All ADM Blog Posts Tagged 'vehicles' - Automotive Digital Marketing ProCom2015-08-02T18:23:27Zhttp://www.automotivedigitalmarketing.com/profiles/blog/feed?tag=vehicles&xn_auth=noForget MORE Leads. Focus On More QUALITY Leads.tag:www.automotivedigitalmarketing.com,2015-01-12:1970539:BlogPost:5742932015-01-12T11:30:00.000ZTimmy D. Jameshttp://www.automotivedigitalmarketing.com/profile/TimmyDJames
<p><a href="http://api.ning.com:80/files/LXZYmTRupZ80MgEuEuPxL9PA3XqOM2oM-6lK4lKYbmbftYlrTRwy0C37CxTWcGIcsuQ7bkpp5wEKmtbogoycRSS1UDy8pYvg/FF_DS1.jpg" target="_self"><img class="align-right" src="http://api.ning.com:80/files/LXZYmTRupZ80MgEuEuPxL9PA3XqOM2oM-6lK4lKYbmbftYlrTRwy0C37CxTWcGIcsuQ7bkpp5wEKmtbogoycRSS1UDy8pYvg/FF_DS1.jpg?width=350" width="350"></img></a> In the world of automotive retail, dealerships are always searching for ways to increase leads. Whether they choose to pursue that goal through third-party lead providers, increase page rankings through better SEO, or various other ways, if there is a customer in their market who wants to buy a car, dealers want an…</p>
<p><a target="_self" href="http://api.ning.com:80/files/LXZYmTRupZ80MgEuEuPxL9PA3XqOM2oM-6lK4lKYbmbftYlrTRwy0C37CxTWcGIcsuQ7bkpp5wEKmtbogoycRSS1UDy8pYvg/FF_DS1.jpg"><img class="align-right" src="http://api.ning.com:80/files/LXZYmTRupZ80MgEuEuPxL9PA3XqOM2oM-6lK4lKYbmbftYlrTRwy0C37CxTWcGIcsuQ7bkpp5wEKmtbogoycRSS1UDy8pYvg/FF_DS1.jpg?width=350" width="350"/></a>In the world of automotive retail, dealerships are always searching for ways to increase leads. Whether they choose to pursue that goal through third-party lead providers, increase page rankings through better SEO, or various other ways, if there is a customer in their market who wants to buy a car, dealers want an opportunity to earn their business.</p>
<p> </p>
<p>When a shopper shows up to the lot, the sales team is trained to engage the shopper and ultimately get the shopper emotionally attached to a vehicle, even if it is not the exact vehicle the shopper was initially inquiring about. In other words, your goal is to make the shopper want a vehicle the dealership has in stock, regardless of which vehicle the customer came in asking about. This is accomplished with the walk around. </p>
<p> </p>
<p>This sales technique doesn’t have to be limited to physical customers at your dealership. Online, a good video will accomplish this same emotional process. A video is the best way to engage a consumer on your VDP Pages and showcase your vehicle. This highly visual medium allows you to deliver the most information while also selling your dealership and the vehicle at the same time.</p>
<p> </p>
<p>Getting the consumer emotionally attached to the vehicle and MAKING them want a vehicle you have versus simply HOPING they will want a vehicle you have is how you produce the MOST &amp; BEST leads you can get. They are more likely to re-engage after their initial communication (answer your phone call or respond to your email); more likely to set an appointment; more likely to show for that appointment and they are more likely to purchase.</p>
<p> </p>
<p>This whole process is less about the information you have available on your site and more about how you deliver the information. You could have tons of information and all kinds of pictures, but today’s consumer wants their content delivered via video…which is a “win/win” because with a video you can deliver the information and “sell” the vehicle at the same time. </p>
<p> </p>
<p>Make good use of video and ensure that you have full and complete vehicle descriptions. You end up with more quality leads which should translate into increased responses and more productive engagement (less haggling over price), leading to the ultimate goal of increased sales.</p>Will Service Technicians Need Computer Development Skills Soon?tag:www.automotivedigitalmarketing.com,2015-01-08:1970539:BlogPost:5738272015-01-08T13:00:00.000ZRichard Hollandhttp://www.automotivedigitalmarketing.com/profile/RichardHolland
<p><a href="http://api.ning.com:80/files/HjAnC3puPQ0fnbDwTUbUcEc72JB4UKFEUefxaFwoUgABeHpkmcL3WSFzdkie1u4zjmXRI25ClYgQIbTkwG5sV8e*eB-IS*Oz/AP_DS1.jpg" target="_self"><img class="align-right" src="http://api.ning.com:80/files/HjAnC3puPQ0fnbDwTUbUcEc72JB4UKFEUefxaFwoUgABeHpkmcL3WSFzdkie1u4zjmXRI25ClYgQIbTkwG5sV8e*eB-IS*Oz/AP_DS1.jpg?width=350" width="350"></img></a> Each year OEMs add more and more advanced technology to their vehicles. As a result, the skill set demanded of today’s technician has transitioned from one that is purely mechanical, into one that is more technology-based. Up until now, technicians have had access to master techs at their respective manufacturers to…</p>
<p><a target="_self" href="http://api.ning.com:80/files/HjAnC3puPQ0fnbDwTUbUcEc72JB4UKFEUefxaFwoUgABeHpkmcL3WSFzdkie1u4zjmXRI25ClYgQIbTkwG5sV8e*eB-IS*Oz/AP_DS1.jpg"><img class="align-right" src="http://api.ning.com:80/files/HjAnC3puPQ0fnbDwTUbUcEc72JB4UKFEUefxaFwoUgABeHpkmcL3WSFzdkie1u4zjmXRI25ClYgQIbTkwG5sV8e*eB-IS*Oz/AP_DS1.jpg?width=350" width="350"/></a>Each year OEMs add more and more advanced technology to their vehicles. As a result, the skill set demanded of today’s technician has transitioned from one that is purely mechanical, into one that is more technology-based. Up until now, technicians have had access to master techs at their respective manufacturers to help diagnose and repair vehicles, and that was enough. However, that might be changing.</p>
<p> </p>
<p>A recent <a href="http://adage.com/article/digital/owns-dashboard-apple-google-automakers/296200/">AdAge</a> article discusses the battle between CarPlay (Apple’s in-car technology) and Android Auto (Google’s). As there is increasing demand from consumers for smartphone integration into their vehicles, these two behemoths have been courting auto manufacturers.</p>
<p> </p>
<p>While the OEMs argue that they will be the ones held responsible by consumers should accidents occur while drivers use these systems, according to the AdAge article, control over this technology is slowly being transferred away from the OEM and towards either Apple or Google. Apple, in particular, is notoriously tight fisted with their operating system. It has no open API and allows nothing onto its hardware without full consent. According to the article, when asked about guidelines for app approval, a GM spokesman stated, “Apple and Google own the products themselves and are really the only ones who can speak to the final decision-making.”</p>
<p> </p>
<p>While this struggle over technology control occurs, the question still waiting to be asked is who supports these technologies? Consumers confronted with issues will undoubtedly seek assistance from their dealership. If both Apple and Google retain control over these technologies, they will also be required to support it, or open their systems up to manufacturers and dealers to diagnose and fix, which judging from previous history seems very unlikely.</p>
<p> </p>
<p>In the event that a consumer encounters a problem with their CarPlay or Android Auto systems, in order to diagnose and fix the issue, technicians will more than likely have to interact with either Apple or Google. Whether that’s accomplished through step-by-step instructions via a dedicated automotive support team that the OEM implements, or Apple and Google develop some sort of over-the-air diagnosis and repair processes, is yet to be seen.</p>
<p> </p>
<p>Manufacturers are adding hot new features to vehicles in an effort to make them more desirable – such as integrated Wi-Fi hotspots. But in so doing they are trading control over those features. Perhaps someday there will be an Apple Auto Genius Bar similar to the tech support available at Apple Stores, but dedicated to automobiles. Only time will tell. But one thing is certain – automotive technicians are going to need increasingly advanced training so as to keep up with the pace of advancing automotive technology.</p>Can Solar Roads Help Sell Electric Vehicles?tag:www.automotivedigitalmarketing.com,2014-11-25:1970539:BlogPost:5630662014-11-25T19:48:19.000ZBrad Simmonshttp://www.automotivedigitalmarketing.com/profile/BradSimmons770
<p>With the push to “go green” there’s been a lot of talk about hybrid and electric vehicles—or just cars that get better gas mileage in general. We’re all up to date—more or less—on that trend, but have you heard about the push for solar-power roads? If you’re selling a hybrid vehicle like the <a href="http://www.autonationtoyotaweston.com/models/toyota-priusplugin" target="_blank">2015 Prius Plug-in</a> to a future-savvy shopper, the possibility of solar-power roads popping up down the line…</p>
<p>With the push to “go green” there’s been a lot of talk about hybrid and electric vehicles—or just cars that get better gas mileage in general. We’re all up to date—more or less—on that trend, but have you heard about the push for solar-power roads? If you’re selling a hybrid vehicle like the <a href="http://www.autonationtoyotaweston.com/models/toyota-priusplugin" target="_blank">2015 Prius Plug-in</a> to a future-savvy shopper, the possibility of solar-power roads popping up down the line might just be the icing on the cake. The Prius Plug-in is a hot item for those looking to go green. When its battery is fully charged the Plug-in gets 95 mpg, and after the battery is depleted it gets 51/49 mpg city/highway (<a href="http://www.plugincars.com/toyota-prius-plugin-hybrid" target="_blank">plugincars.com</a>). Imagine never having to run it at 50 mpg because there’s an outlet on the road. No need to wait for the next gas station, just pull over at the next outlet that gets its juice directly from solar panels.</p>
<p>But does anyone really think roads with solar panels in them are going to be viable? In the Netherlands a design consortium already constructed a bike path made from solar panels. It’s only 230 feet long and the price tag for design and construction was a cool $3.7 million (<a href="http://www.newsweek.com/2014/11/28/designers-building-roadways-generate-solar-power-284861.html" target="_blank">newsweek.com</a>). Here in the states, Scott and Julie Brusaw of Sandpoint, Idaho have been working on their Solar Roadways project. In 2009 they received a contract from the Federal Highway Administration. They developed a prototype parking lot that uses hexagonal solar panel cells. The solar road would have LED lighting and could also house power and data cables. It would be heated slightly above freezing to deter the accumulation of snow and ice. Perks include no dead zones for cell phones, a warning system for drivers, and an “electric vehicle infrastructure” (according to the Solar Roadways <a href="http://www.solarroadways.com/numbers.shtml" target="_blank">website</a>).</p>
<p>This year the Solar Roadways project raised $2.2 million through IndieGoGo. It’s got some steam building. There is still a lot more work to do to make solar roads happen, but let’s just put it this way: the project is definitely not dead in the water. We can use the type of optimism solar roads are generating to generate even more optimism for the future of EV’s. So, while your typical car-buyer might be thinking in practical terms, even the most practical among us can dream of a future where electric vehicles run free. </p>8 Segments That Will Lead 4th Quarter Depreciationtag:www.automotivedigitalmarketing.com,2014-10-21:1970539:BlogPost:5597842014-10-21T17:48:29.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>Black Book expects Luxury-Level car segments will feel the largest depreciation through the balance of the year, largely driven by off-lease returns in lease-heavy segments. Luxury segments in this class will include Premier Luxury (BMW 7 Series, Audi A8, Lexus GS/LS, Mercedes-Benz S); Near-Luxury (Audi A4, Mercedes-Benz C, Cadillac CTS, Acura TL); and Luxury Level (BMW 5 Series, Audi A6, Cadillac DTS, Lexus IS, Infiniti M, Lincoln MKS).</p>
<p> <br></br> Entry-level and small cars will also…</p>
<p>Black Book expects Luxury-Level car segments will feel the largest depreciation through the balance of the year, largely driven by off-lease returns in lease-heavy segments. Luxury segments in this class will include Premier Luxury (BMW 7 Series, Audi A8, Lexus GS/LS, Mercedes-Benz S); Near-Luxury (Audi A4, Mercedes-Benz C, Cadillac CTS, Acura TL); and Luxury Level (BMW 5 Series, Audi A6, Cadillac DTS, Lexus IS, Infiniti M, Lincoln MKS).</p>
<p> <br/> Entry-level and small cars will also feel noticeable value drops as a result of significantly low fuel prices and falling demand for these vehicles. Cars in this class include Entry Midsize Cars (Chrysler 200, Ford Fusion, Chevrolet Malibu, Volkswagen Jetta, Toyota Prius); Upper Midsize Cars (Honda Accord, Nissan Altima, Toyota Camry, Kia Optima, Ford Taurus); and Compact Car (Honda Civic, Chevrolet Cobalt, Chevrolet Cruze, Ford Fiesta, Ford Focus). </p>
<p> <br/> Two additional segments expected to see higher depreciation include higher end full-size SUV (Nissan Armada, Jeep Commander, Dodge Durango, ford Expedition, Chevrolet Tahoe); and the Compact Crossovers (Jeep Compass, Honda CR-V, Mazda CX-7, Chevrolet Equinox, Ford Escape, Nissan Rogue).</p>
<p> <br/> “Fuel prices and off-lease returns will continue to have a noticeable impact on luxury-level and smaller car segments through the remainder of the year,” said <b>Ricky Beggs, Editorial Director of Black Book.</b> “The compact crossovers are experiencing higher than normal depreciation because of the large number of various models available within the segment.”</p>
<p><br/> Black Book® is best known in the automotive industry for providing timely, independent and accurate vehicle pricing information, and is available to industry-qualified users through online subscription products, mobile applications and licensing agreements. A leading provider since 1955, Black Book has continuously evolved to ensure that it achieves its goal of delivering mission-critical information to its customers, along with the insight necessary to successfully buy, sell, and lend. Black Book data is published daily by National Auto Research, a division of Hearst Business media, and the company maintains offices in Georgia, Florida, and Maryland. </p>Level of Change Reverses Positiontag:www.automotivedigitalmarketing.com,2014-10-13:1970539:BlogPost:5588662014-10-13T15:44:55.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>Hello and welcome to this week’s edition of <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-10-13-2014" target="_blank">Beggs on the Used Car Market</a>, with data and insights from Ricky Beggs and Black Book. From all of the reports and seeing the action first hand we know how active most dealers and remarketers have been this past week. The comments within the Black Book survey personnel summary reports this past week as compared to the prior week took on a…</p>
<p>Hello and welcome to this week’s edition of <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-10-13-2014" target="_blank">Beggs on the Used Car Market</a>, with data and insights from Ricky Beggs and Black Book. From all of the reports and seeing the action first hand we know how active most dealers and remarketers have been this past week. The comments within the Black Book survey personnel summary reports this past week as compared to the prior week took on a different tone and perception of the market. I thought the number of comments referencing a “steady”, a “good” and a “solid” market was not the normal mid-October tone. Sure there was still the occasional “plenty of no sales” and the “2014s were a tough sale” type comments but maybe the reason for the change in perception overall was actually due to the variance from prior weeks in the level of change of the cars versus the truck segments.</p>
<p> </p>
<p>Overall the cars average segment change of -$64 was the lowest level of decline since the -$60 change for the week ending August 15, eight weeks ago. The -$64 change almost mirrored the -$65 change of one year ago. And in keeping with the year ago levels of change, the Entry Sporty Cars and the Entry Level Cars changing by -$36 and -$40 respectively were the lowest declining segments within the cars for the week this year, as well as one year ago.</p>
<p> </p>
<p>There was also some consistency week over week as four car segments had either a $2 or $1 change level as the Entry Mid-size Cars and the Luxury Level Cars changed the slightly larger $2 amount and the Near Luxury Cars and the Full-size Cars had just the $1 change. Each of these four with little weekly difference was better or lower than the overall segment change within the cars.</p>
<p> </p>
<p>Where the cars had a lower week over week declining level the trucks, at still less change than the cars, showed an increase level of change overall increasing from a -$14 and -$21 average change two and three weeks ago to -$36 this past week.</p>
<p> </p>
<p>The Full-size Pickups and both of the Full-size Van configurations continued their increasing levels of change, while the Full-size SUVs, Full-size Crossovers and the Luxury Level SUVs were in the -$100 plus levels of change for the week.</p>
<p> </p>
<p>And speaking of change, the price of gas declined by $.05 week over week to $3.30 per gallon. This is $.07 below year ago levels, and the lowest level since the week of February 3. 2014, yet still $.11 above the low point of the past year of $3.19 for the week of November 11, 2013. And as I tweeted earlier last week, I actually paid below $3.00 for the first time in the past year. If I had slipped over to our neighboring states to the east or the west, it would have probably been another $.20 or so less.</p>Equifax Automotive Lender Customers Gain Access To Black Book Vehicle Value Datatag:www.automotivedigitalmarketing.com,2014-10-07:1970539:BlogPost:5586222014-10-07T14:06:21.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>Equifax Inc. (NYSE:EFX), a global information solutions company, announced that its auto lending customers will now have the added benefit of direct access to Black Book® vehicle value data and loan-to-value (LTV) model data.<br></br> <br></br> By incorporating Black Book data with differentiated Equifax data, lenders can better evaluate LTVs at origination, migration of LTVs, collateral risk and layered risk.<br></br> <br></br> Additionally, using Equifax and Black Book data gives lenders additional tools…</p>
<p>Equifax Inc. (NYSE:EFX), a global information solutions company, announced that its auto lending customers will now have the added benefit of direct access to Black Book® vehicle value data and loan-to-value (LTV) model data.<br/> <br/> By incorporating Black Book data with differentiated Equifax data, lenders can better evaluate LTVs at origination, migration of LTVs, collateral risk and layered risk.<br/> <br/> Additionally, using Equifax and Black Book data gives lenders additional tools to monitor evolving LTV ratios over time and better identify which vehicles present the most risk and growth potential. This enables lenders to more effectively forecast where losses may be more likely to occur and adjust lending strategies as a proactive countermeasure.<br/> <br/> Beyond gains in portfolio management, the solution also enables lenders to better manage their:</p>
<ul>
<li>Ongoing account management strategy (by more accurately targeting who to call, when to call and how often);</li>
<li>Remarketing and recovery (determination of auto value to justify repossession);</li>
<li>Pricing strategy (to determine which rate/term/LTVs are most appropriate for individual customer/collateral combinations); and</li>
<li>Competitiveness (by knowing what the competition is buying and by what credit segment).</li>
</ul>
<p><br/>“Our commitment has always been to providing our customers with access to multiple data sources to support their lending initiatives,” said Lou Loquasto, Auto Finance Leader, Equifax. “In today’s auto lending environment, lenders are gaining competitive advantages through appropriate use of credit, capacity and collateral insights, which is key to understanding layered risk, reducing stipulations and streamlining loan decisioning.”<br/> <br/> “Through our relationship with Equifax, we are aligning two of the most trusted sources of data in the industry to provide essential insights for succeeding in today’s market," said Jared Kalfus, VP of Data Licensing. “Our solution streamlines pivotal analytic processes, allowing customers to work more efficiently and effectively.”<br/> <br/> <b>About Black Book®<br/></b> Black Book is best known in the automotive industry for providing timely, independent, and accurate vehicle pricing information, and is available to industry qualified users through our subscription products, mobile applications and licensing agreements. A leading provider of marketplace insight since 1955, Black Book continues to evolve, embracing technological advances and delivering quality products and services throughout the automotive industry. Black Books Subscription Services, Automotive Solutions, Lender Solutions and Activator groups offer the insight necessary for success whether you’re buying, selling or lending. Black Book data is published daily by National Auto Research, a division of Hearst Business media, and maintains offices in Georgia, Florida, and Maryland. For more information, please visit BlackBookAuto.com or call 800.554.1026<br/> <br/> <b>About Equifax, Inc.<br/></b> Equifax is a global leader in consumer, commercial and workforce information solutions that provide businesses of all sizes and consumers with insight and information they can trust. Equifax organizes and assimilates data on more than 600 million consumers and 81 million businesses worldwide. The company’s significant investments in differentiated data, its expertise in advanced analytics to explore and develop new multi-source data solutions, and its leading-edge proprietary technology enable it to create and deliver unparalleled customized insights that enrich both the performance of businesses and the lives of consumers.<br/> <br/> Headquartered in Atlanta, Equifax operates or has investments in 19 countries and is a member of Standard &amp; Poor's (S&amp;P) 500® Index. Its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. In 2013, Equifax was named a Bloomberg BusinessWeek Top 50 company, was #3 in Fortune's Most Admired list in its category, and was named to InfoWeek 500 as well as the FinTech 100. For more information, please visit <a href="http://www.equifax.com">www.equifax.com</a>.</p>Industry insight: Where’s The Consistency?tag:www.automotivedigitalmarketing.com,2014-10-06:1970539:BlogPost:5586882014-10-06T16:53:46.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>Hello and welcome to this week’s edition of <a href="http://www.blackbookauto.com/video/industry-insight-wheres-the-consistency" target="_blank">Beggs on the Used Car Market</a>. In last week’s video market blog in addition to some market movement insight, we included a short interview with Paul Seger, Vice President, Asset Remarketing with GE Fleet Services. We have two more of the key industry remarketing personnel interviews from the recent NAAA convention to share with you today. We will…</p>
<p>Hello and welcome to this week’s edition of <a href="http://www.blackbookauto.com/video/industry-insight-wheres-the-consistency" target="_blank">Beggs on the Used Car Market</a>. In last week’s video market blog in addition to some market movement insight, we included a short interview with Paul Seger, Vice President, Asset Remarketing with GE Fleet Services. We have two more of the key industry remarketing personnel interviews from the recent NAAA convention to share with you today. We will bring you some of our weekly market thoughts after these interview clips. Let’s start with Patty Stanley, owner of Carolina and Indiana Auto Auctions and also the current President of the ServeNet Auction Group. We will then share the audio interview of Brad Bollman, Vice President, Remarketing Solutions for GM Financial. I think their thoughts and insight will be of interest to you.</p>
<p> </p>
<p>As we looked at the results of the auction activity and the Black Book Editors’ analysis we see overall consistency in the level of change within the cars. It is a slightly lower week over week average segment change of -$71 this past week as compared to the prior week of -$84. When I say consistency, the four week average change during the month of September was -$70. When excluding the high level change of the Premium Sporty Cars of -$168, the range from the lowest change level of -$42 on the Near Luxury Cars to the second highest change of -$80 on the Entry Sporty Cars, is a very minor $38. This is another sign of the level of consistency within the cars.</p>
<p> </p>
<p>The truck segments average segment change for each of the past three weeks has gradually declined to only -$14 this past week, the lowest level of change since the -$9 for the week ending June 6, 2014.</p>
<p> </p>
<p>Do you think there are any segments that have consistently fared better than the overall car and truck segment average change over the past three months? There are a couple that fit in this scenario for all but one of the twelve weekly periods, the Upper Mid-size Cars and the Full-size Passenger Vans. But there are two that can make that claim for all of the weeks in the past twelve weeks. The Compact Cars are one with the Compact Pickups are the other. The average weekly change for the Compact Cars over the past twelve weeks is -$57, while the Compact Pickups came in with an average change of -$20. If you have vehicles in any of these segments this might indicate some models to stick with a little longer in your inventory, even if they are reaching the limit on your days to turn policy. It might also indicate some models to add to your inventory.</p>
<p> </p>
<p>Thanks for your interest in this Black Book market report. We hope to see you back on the auction lanes again this week. We hope you have a great day!</p>Tremendous Supporters!tag:www.automotivedigitalmarketing.com,2014-09-30:1970539:BlogPost:5580872014-09-30T17:35:10.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>Welcome to this week’s edition of <a href="http://www.blackbookauto.com/video/tremendous-support" target="_blank">Beggs on the Used Car Market</a>, with insight and data from Ricky Beggs and Black Book. What a week it was as Black Book was on the lanes getting the most current market insight and also attending the annual National Auto Auction Association convention, this year in historic Boston. A huge thank you goes out to all the auctions and remarketers that support Black Book as we…</p>
<p>Welcome to this week’s edition of <a href="http://www.blackbookauto.com/video/tremendous-support" target="_blank">Beggs on the Used Car Market</a>, with insight and data from Ricky Beggs and Black Book. What a week it was as Black Book was on the lanes getting the most current market insight and also attending the annual National Auto Auction Association convention, this year in historic Boston. A huge thank you goes out to all the auctions and remarketers that support Black Book as we report the used market on a daily basis. At the convention Black Book was a sponsor of the initial Pedal Car Auction, created to help raise money for the NAAA Warren Young Sr Scholastic Foundation, Inc. The auction raised over ten times its stated goal of $50,000. Yes, over $556,000 was raised through the auctioning of eleven, one-of-a-kind pedal cars, with electricity in the air throughout the auction. The numbers at Barrett Jackson can’t match the $102,000 one of these cars brought, as these don’t even have an engine! Auctions are tremendous supporters within their individual communities and also supporting the educational efforts of the association.</p>
<p> </p>
<p>Recognition was also given to Dealers Auto Auction of Huntsville and owner David Andrews as the NIADA Auction of the Year. The list of things this auction has done for their community is long and impressive.</p>
<p> </p>
<p>During the convention several key industry personnel took the time to sit down with us and share their thoughts on a few topics regarding the market. We are including one of those in this week’s video market update blog with others to be shared with you in the coming weeks. Today let’s hear what Paul Seger, GE Fleet Services, Vice President, Asset Remarketing sees in the auction industry.</p>
<p> </p>
<p>The market was very active this past week with some expected movement, while also being a little surprised at other changes, or should I say lower levels of change. As expected, gas prices continue their decrease in the price at the pump, as we are now at thirteen consecutive weeks of no increases. Now at $3.35 per gallon, as compared to $3.50 one year ago, we are at the lowest average national price since the week of February 10, 2014.</p>
<p> </p>
<p>Also, as was expected, is the level of the change within the car segments. The average segment change was at -$84, the largest decline since the week of August 1st. This is in line with changes of the past month. Not surprisingly the higher end more luxury focused segments are moving the greatest dollar amount with the Premium Sporty Cars, the Prestige Luxury Cars and the Near Luxury Cars all declining by over -$100 and the Luxury Level Cars just less at -$95. Interestingly, this amount almost matched the segment change of one year ago where the change was -$73 overall, and also having three of the just-mentioned segments moving down by -$100 or more. </p>
<p> </p>
<p>The market data and our conversations this past week also indicate the current and one year old models being the toughest sell. This is being driven by the 2015 models becoming available, and with the need to create a difference from those values.</p>
<p> </p>
<p>Of a more pleasant surprising nature, the truck market adjusted at only -$21 for the week, the lowest weekly declining amount since the week of July 2, 2014, where there was a change of -$20. I was not surprised at the movement within the Full-size Vans where the cargo and passenger versions increased by $24 and $25 respectively. The primarily no longer made old style vans are getting tremendous attention right now. But with three other segments increasing for the week, this is a variance from the normal seasonal movement.</p>
<p> </p>
<p>We will be back on the auction lanes this coming week with Daily market value updates to the data and mobile applications, to see if the market segments continue along the same path or take on another adjustment level.</p>
<p> </p>
<p>On October 1st we will be posting the Beggs on the Specialty Markets video blog. So if you are interested in the collectible and exotic car markets, RVs, motorcycles and other powersports models, along with the Medium and Heavy Duty Trucks, please tune in for the latest market insight on the first of the month.</p>BLACK BOOK LENDER SOLUTIONS EXPANDS ROSTER OF LOAN ORIGINATION SYSTEM PROVIDERStag:www.automotivedigitalmarketing.com,2014-09-30:1970539:BlogPost:5579382014-09-30T13:34:51.000ZJohn Sternalhttp://www.automotivedigitalmarketing.com/profile/JohnSternal
<p>Black Book announces the integration of its vehicle valuation data into a number of today’s leading providers of loan origination systems used by auto lenders. Recent integrations include Credex, Compass Technologies and FNI (Financial Network Inc.).<br></br> <br></br> This continued expansion of Black Book data throughout industry loan origination systems allows lending decisions to be made in less time and with lower costs, thus accelerating the approval process. These operational efficiencies,…</p>
<p>Black Book announces the integration of its vehicle valuation data into a number of today’s leading providers of loan origination systems used by auto lenders. Recent integrations include Credex, Compass Technologies and FNI (Financial Network Inc.).<br/> <br/> This continued expansion of Black Book data throughout industry loan origination systems allows lending decisions to be made in less time and with lower costs, thus accelerating the approval process. These operational efficiencies, combined with the risk management benefits of Black Book Lender Solutions insight, helps auto lenders remain ultra competitive and focused on profitable growth opportunities.<br/> <br/> Many of today’s leading auto lenders are leveraging vehicle values from Black Book Lender Solutions, with data that is fully integrated into loan origination systems powered by some of the most notable providers: defi SOLUTIONS, Fidelity, Crif Lending Solutions, Argo Data Resources Corp, Meridian Link, Allied Business Solutions and Megasys.<br/> <br/> “Black Book’s footprint continues to expand in this segment of the industry as loan origination system providers respond to customer demand to have access to our values,” said Jared Kalfus, Vice President of Data Licensing for Black Book. “Today’s most profitable companies leverage tools and resources that provide smarter and faster decision-making, along with operational efficiencies.”<br/> <br/> “Efficiency and speed of approval can greatly impact our lender customers’ ability to compete and realize larger profit potential,” said Lloyd Wright, President of Credex Systems. “With Black Book vehicle value data fully integrated into the loan origination system, lenders can reduce application errors and streamline the entire approval process for clients entering their portfolio.”<br/> <br/> “Our customers love the speed and accuracy advantage they get with ease of access to Black Book industry leading data,” said Stephanie Alsbrooks, CEO of defi SOLUTIONS. “Coupled with our defi Solutions configurable rules, Black Book data allow customers to automatically call the value data at any point in their process from application to funding.”<br/> <br/> “Black Book is one of the most accurate vehicle evaluation tools on the market,” said Jeremy Engbrecht, President, CRIF Select division, CRIF Lending Solutions. “Streamlining the lending process is paramount for lenders to capture more business in today’s evolving market. Time is money, especially in the auto industry, which is why we are proud to integrate our CRIF ACTion loan origination technology platforms for direct and indirect auto lending with Black Book.</p>
<p><br/>Black Book® is best known in the automotive industry for providing timely, independent and accurate vehicle pricing information, and is available to industry-qualified users through online subscription products, mobile applications and licensing agreements. A leading provider since 1955, Black Book has continuously evolved to ensure that it achieves its goal of delivering mission-critical information to its customers, along with the insight necessary to successfully buy, sell, and lend. Black Book data is published daily by National Auto Research, a division of Hearst Business media, and the company maintains offices in Georgia, Florida, and Maryland. </p>Varying Movement As The Leaves Are Ready To Falltag:www.automotivedigitalmarketing.com,2014-09-22:1970539:BlogPost:5572732014-09-22T15:24:59.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>Welcome to this week’s <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-09-22-2014" target="_blank">Beggs on the Used Car Market</a>, with data and insight from Ricky Beggs and Black Book. As we passed through each day with attendance at auctions and watching others online by the editors, it is obvious regarding the interest in the used market while recognizing the overall value movement and the number of no sales, that we are fully engaged in the beginning of the…</p>
<p>Welcome to this week’s <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-09-22-2014" target="_blank">Beggs on the Used Car Market</a>, with data and insight from Ricky Beggs and Black Book. As we passed through each day with attendance at auctions and watching others online by the editors, it is obvious regarding the interest in the used market while recognizing the overall value movement and the number of no sales, that we are fully engaged in the beginning of the fall market. The only thing that to me was not indicative of a really weaker valuation trend in the market was that 24% of the 1850 vehicles adjusted each day throughout the week were increases to the most recently published values. That is not an overly large level, but it is <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-09-22-2014" target="_blank">greater than any week</a> since the week ending July 11, 2014, which came in at 27%. Last year for this time through the first of November the levels ranged from only 9% up to 18%.</p>
<p> </p>
<p>From the week before last, where gas did not change week over week, the move this past week was the largest change at a decrease of $.05 week over week, since the $.05 increase for the week of April 14, 2014. We are still pleased to see gas $.14 below the same week one year ago. For those pumping diesel fuel there was only a $.01 drop this past week which is also <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-09-22-2014" target="_blank">better than last year’s prices</a> by $.17.</p>
<p> </p>
<p>Taking a look at the truck segments, the overall segment change was at the lowest in the past four weeks at -$45. The Compact and Full-size Pickups showed the most consistency with changes of only -$6. The Mid-size SUVs the past two weeks have shown more consistency with changes of -$20 this past week and -$14 for the prior week. Last week we reported some significant decreases in values in all of the full-size utilities. Each of those had smaller, and more typical changes this past week.</p>
<p> </p>
<p>When looking at the overall car segment changes, the -$66 drop is pretty consistent with the pattern of changes of the cars over the past eleven weeks. On a more positive note, the Entry Level Cars down by $12 for the week, have been the best in low depreciation over the past three weeks. It is interesting that even with the lowering gas prices all of the four more fuel efficient segments are under the overall segment level change.</p>
<p> </p>
<p>Since 1999 there has been only one year where cars have outsold the vehicles making up the truck market: the pickups, vans and utilities. This happened just after gas prices hit the all-time record high point, and also when the Cash for Clunkers program was in existence.</p>
<p> </p>
<p>This past week a couple of the editors got their initial look at the revolutionary built, aluminum bodied 2015 Ford F150. The outward physical appearance isn’t eye opening different, but with a much lighter weight vehicle, the slightly tweaked carryover engines, along with a totally new 2.7L Ecoboost engine, the performance is greater than our expectations. Black Book will be doing much further in-depth analysis as we prepare our initial residual forecasts for the leasing and lending industries.</p>
<p></p>
<p>We are keeping our eyes on the current used market to see if and when the market jumps into full fall mode. I am looking forward to talking with many from the auction and remarketing industry at the annual NAAA convention this week in Boston. In the meantime the Black Book editors and survey personnel hope to see you across the country on the auction lanes.</p>Challenge Completed, Market Continues Movingtag:www.automotivedigitalmarketing.com,2014-09-15:1970539:BlogPost:5561362014-09-15T15:26:47.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>Thanks for tuning into this week’s edition of <a href="http://www.youtube.com/watch?v=P4TMJB0yUpg" target="_blank">Beggs on the Used Car Market</a>, with data and insights from Ricky Beggs and Black Book.</p>
<p> </p>
<p>The movement in the market continues, and pretty much as was expected. The average segment change for both the cars and the trucks was at -$73 and -$64 respectively, a greater decline for both pieces of the market than the prior week. For the cars it was a very similar…</p>
<p>Thanks for tuning into this week’s edition of <a href="http://www.youtube.com/watch?v=P4TMJB0yUpg" target="_blank">Beggs on the Used Car Market</a>, with data and insights from Ricky Beggs and Black Book.</p>
<p> </p>
<p>The movement in the market continues, and pretty much as was expected. The average segment change for both the cars and the trucks was at -$73 and -$64 respectively, a greater decline for both pieces of the market than the prior week. For the cars it was a very similar change level to the year ago period of -$77, while the trucks had the largest average segment change level since the week of February 21, 2014. This level of change within the trucks did not really occur with any consistency in 2013 until a little later in the year, around the middle of October and first part of November. We will keep our attention on these segments to see if this level of change will continue overall through the remainder of 2014. </p>
<p> </p>
<p>This past week’s level of change was somewhat affected by the significant level of change within two segments, the Luxury SUVs and the Full-size SUVs at -$240 and -$133 respectively. Two weeks ago the Full-size Crossovers stood out with a change of -$195, and was still at a noticeable level this week, even though much less at -$87. There is no question about the large utilities and a pattern of larger adjustments.</p>
<p> </p>
<p>When the change amounts of the higher end, luxury segments within the cars is viewed, a similar pattern to that of the full-sized higher priced utilities exists. The real softness in the market for the cars and trucks is revolving around the higher dollar units, while on the other end of the smaller adjusting segments, we have the less expensive units. Is this a sign of a tougher lender market or a concern by some regarding the overall economy?</p>
<p> </p>
<p>On the other end of the price spectrum the smaller dollar amount moving segments were from the lower average prices of the Entry Mid-size Cars, the Entry Level Cars, and the Compact Cars. With these being the more fuel efficient models, and with the larger adjusting truck segments being the less fuel efficient utilities, this sure can’t be attributed to the price of gas at the pump. With the price of gas this past week at $3.46 and diesel at $3.81, there is basically no change week over week, with these prices both still consumer friendly and $.13 less than year ago prices.</p>
<p> </p>
<p>There will be a full middle of the month week of auction activity for all of us to jump into. We will sharpen our pencils as we gather and analyze the data. We’ll report back to you the latest market values each day, and share the market summary again next week with this weekly video blog. We will see you on the lanes and hope you have a great week!</p>Which Vehicle Achieves Equity Position The Fastest?tag:www.automotivedigitalmarketing.com,2014-09-15:1970539:BlogPost:5560152014-09-15T13:17:05.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>24.9% of all car loans were 73 to 84 months long during the first quarter of 2014 according to Experian. This number continues to grow compared with just a few years ago. And while delinquencies are still at historic lows, how can auto lenders determine when vehicles entering their portfolio are expected to reach a position of equity?<br></br> <br></br> Black Book is working with auto lenders to take a close look at comparative collateral data in order to spot this trend. The company recently…</p>
<p>24.9% of all car loans were 73 to 84 months long during the first quarter of 2014 according to Experian. This number continues to grow compared with just a few years ago. And while delinquencies are still at historic lows, how can auto lenders determine when vehicles entering their portfolio are expected to reach a position of equity?<br/> <br/> Black Book is working with auto lenders to take a close look at comparative collateral data in order to spot this trend. The company recently leveraged its Collateral Insight Engine technology to compare two different vehicles based on the exact loan terms of 72 months, 5% interest and a 120% loan-to-value ratio.<br/> <br/> Based on the data from the example, one achieved a positive equity position in just 37 months, a whole 15 months earlier than the other vehicle (at 52 months). What’s more, the first vehicle had approximately $3000 more equity by month 24 versus that of the second. Knowing the potential loss-given default provides the ability for lenders to become more competitive with their portfolios while mitigating risk. Additionally, that positive equity will pinpoint those loans that are less likely to default, giving lenders yet one more data point to differentiate two loans that look otherwise identical.</p>
<p></p>
<p>Black Book® is best known in the automotive industry for providing timely, independent and accurate vehicle pricing information, and is available to industry-qualified users through online subscription products, mobile applications and licensing agreements. A leading provider since 1955, Black Book has continuously evolved to ensure that it achieves its goal of delivering mission-critical information to its customers, along with the insight necessary to successfully buy, sell, and lend. Black Book data is published daily by National Auto Research, a division of Hearst Business media, and the company maintains offices in Georgia, Florida, and Maryland.</p>Cars And Trucks Adjust At Similar Levelstag:www.automotivedigitalmarketing.com,2014-09-08:1970539:BlogPost:5557142014-09-08T15:00:00.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>Welcome to this week’s edition of <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-09-08-2014" target="_blank">Beggs on the Used Car Market</a>, with data and insight from Black Book on the used car markets. The opening week of college football brought mostly expected results along with a few surprises, and this Bulldog is pleased. And as the new car sales totals were reported this past week, most every manufacturer, along with the franchised dealer body, is pleased…</p>
<p>Welcome to this week’s edition of <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-09-08-2014" target="_blank">Beggs on the Used Car Market</a>, with data and insight from Black Book on the used car markets. The opening week of college football brought mostly expected results along with a few surprises, and this Bulldog is pleased. And as the new car sales totals were reported this past week, most every manufacturer, along with the franchised dealer body, is pleased with their performance as well. Part of the sales success this past month, and for all of 2014, can be attributed to lease penetration continuing to prosper, as Experian data just reported that 25.3% of all sales were financed as part of a lease contract. This also means used supplies continue to increase, lowering the level of aggressive bidding as there are more desirable units to choose from.</p>
<p> </p>
<p>Even though it was a short week due to the Labor Day holiday, there was plenty of data to analyze. The feedback from the auction lanes through the Black Book survey reports gave us two primary type comments. One was a <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-09-08-2014" target="_blank">softer market with more no sales</a>. The other still indicates the <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-09-08-2014" target="_blank">strong seasonal interest in trucks</a>. As the editors attended various auctions, their on the lanes interpretation was also of more no sales, no specific pattern of buying activity, yet really good crowds in attendance.</p>
<p> </p>
<p>The resulting analytical efforts and actual value adjustments ended up with the lowest percentage level of increasing adjustments at only 11%, since the 9% increases for the week ending October 18, 2013. The big difference between the two periods was the number of actual vehicles adjusted at 2146 per day last October and only 1492 per day this past week, direct evidence showing lower bidding activity.</p>
<p> </p>
<p>The average segment change was also larger last October; -$74 and -$64 for the cars and trucks respectively last October, as compared to -$57 and -$54 this past week. For the most recent reporting period, the change for the cars was the <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-09-08-2014" target="_blank">lowest decline week over week</a> in the past eight weeks, where the trucks change was the largest level over the past six weeks. Remember the comment about no pattern in the market and auction activity? Maybe not this past week but overall, year over year, the declining change level for the cars and the trucks has been greater this year.</p>
<p> </p>
<p>With gas prices still very stable, a 1/2 cent increase for gas yet still $.15 lower than a year ago, I was a little surprised that the more stable car segments were the Entry Level Cars at +$1, and the Entry Mid-size Cars and Compact Cars both down by -$32, are the lowest segment declines within the cars.</p>
<p> </p>
<p>There is only one pretty consistent pattern within the market change over the past few weeks and that is for the Full-size Vans where the passenger versions continue to bring the money with a $23 increase in average price week over week, and positive week over week changes for four of the past five weeks.</p>
<p> </p>
<p>This is a great industry to be a part of where whenever there is a need or worthwhile cause, the industry as individuals and as a whole will step forward. One of our industry partners just challenged us to support the ALS division of the Muscular Dystrophy Association with the ICE Bucket Challenge. In support of this tremendous need to find a cure and support those afflicted and their families, we have accepted this challenge. The results will be posted soon, so stay tuned.</p>
<p> </p>
<p>Thanks for your interest in the Black Book used market insight. Have a great week on the auction lanes!</p>USED VEHICLE PRICING STRENGTH REVERSES COURSE IN AUGUST LED BY TRUCKStag:www.automotivedigitalmarketing.com,2014-09-08:1970539:BlogPost:5557712014-09-08T13:39:39.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>According to Black Book® data, the average price of a used vehicle for model years 2009-2013 saw a slight improvement in August with overall depreciation at -1.3% compared with -1.5% in July. Domestic cars changed the most at -2.5%; import cars changed -1.6%; domestic trucks changed -1.1%; and import trucks changed -0.8%. Average pre-recession depreciation is historically between -1% and -2% monthly, and Black Book expects overall 2014 depreciation of -13.5%.<br></br> <br></br> The lower…</p>
<p>According to Black Book® data, the average price of a used vehicle for model years 2009-2013 saw a slight improvement in August with overall depreciation at -1.3% compared with -1.5% in July. Domestic cars changed the most at -2.5%; import cars changed -1.6%; domestic trucks changed -1.1%; and import trucks changed -0.8%. Average pre-recession depreciation is historically between -1% and -2% monthly, and Black Book expects overall 2014 depreciation of -13.5%.<br/> <br/> The lower depreciation rate in August counters the expected seasonal pattern, particularly since the new 2015 models typically force larger depreciation on late-model units this month, and second-half depreciation is still expected to accelerate through the remainder of 2014.<br/> <br/> For the second-straight month, Full-Size Passenger Vans showed the strongest monthly retention, recording +0.1% and the only segment showing positive change (Dodge Sprinter, Ford E-Series, Chevrolet G-Series). Compact SUVs saw the second-best monthly depreciation rate at -0.2% (Jeep Wrangler, Nissan Xterra). The average segment price at the end of August was $20,293, a -5.3% change from year-ago levels ($21,425).<br/> <br/> For the third-straight month, Premium Sporty Cars led all car segments with the lowest depreciation, registering -1.1% in August and -0.9% in July (BMW 6-Series, Mercedes-Benz CL-Class, BMW M6, Audi R8, Audi S8, Mercedes-Benz SL-Class, Cadillac XLR). The average segment price at the end of August was $48,151, a -12.3% change from year-ago levels ($54,898).<br/> <br/> Entry-Level Cars led all segments with the highest monthly depreciation at -4.1% (Chevrolet Aveo, Honda Fit, Kia Rio, Nissan Versa, Toyota Yaris). The average segment price at the end of August was $8,157, a -14.7% change from year-ago levels ($9,562).<br/> <br/> Cargo Minivans led all truck segments with the highest monthly depreciation at -3.3% (Dodge Caravan, Ford Freestar, Dodge Grand Caravan, Ford Transit). The average segment price at the end of August was $11,192, a -11.9% change from year-ago levels ($12,698).<br/> <br/> The top ten best-performing segments were all trucks, and the four truck segments not in the top ten were Compact CUV (-1.3% monthly), Passenger Minivans (-1.5%), Full-Size CUVs (-2.1%) and Cargo Minivans.<br/> <br/> “The near-term outlook for trucks continues to show significant retention strength and these segments are clearly driving the industry as a whole,” said <b>Ricky Beggs, Editorial Director at Black Book</b>. “While the trucks are outperforming seasonal trends currently we’re not surprised to see segments such as Entry-Level cars and Entry Mid-Size cars showing the largest depreciation.”</p>
<p>Black Book® is best known in the automotive industry for providing timely, independent and accurate vehicle pricing information, and is available to industry-qualified users through online subscription products, mobile applications and licensing agreements. A leading provider since 1955, Black Book has continuously evolved to ensure that it achieves its goal of delivering mission-critical information to its customers, along with the insight necessary to successfully buy, sell, and lend.</p>Summer Ends, Continuing Trendstag:www.automotivedigitalmarketing.com,2014-09-02:1970539:BlogPost:5548532014-09-02T13:00:29.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>Hello and welcome to this week’s edition of <a href="http://www.blackbookauto.com/video/summer-ends-continuing-trends" target="_blank">Beggs on the Used Car Market</a> with data and insights from Ricky Beggs and Black Book. By the time you are watching or reading this used car market insight, whether you are a fan of college football or not, you either attended a game or at least watched some on TV. This great passage of fall has finally arrived. Hopefully you were satisfied with the…</p>
<p>Hello and welcome to this week’s edition of <a href="http://www.blackbookauto.com/video/summer-ends-continuing-trends" target="_blank">Beggs on the Used Car Market</a> with data and insights from Ricky Beggs and Black Book. By the time you are watching or reading this used car market insight, whether you are a fan of college football or not, you either attended a game or at least watched some on TV. This great passage of fall has finally arrived. Hopefully you were satisfied with the outcomes.</p>
<p> </p>
<p>When you look at the used market movement over the past week the satisfaction is probably more prominent from the buyers’ perspective as the <a href="http://www.blackbookauto.com/video/summer-ends-continuing-trends" target="_blank">prices continue to trend downward</a>. With the trucks the overall movement was the smallest average decline in segment price over the past eight weeks at only -$29 or -.19% this past week. The Compact SUVs showed a little strength at a $3 increase for the week with the strength of the Full-size Passenger Wagons with no change this past week after a few weeks of strong increases, which we highlighted in last week’s video report with some thoughts on that strength. The Compact Pickups at -$4 are also doing well in their depreciation. If there was one big swing in market movement it would have to be with the Full-size SUVs at only -$11 this past week after the previous two week average was at just over -$103. The Luxury SUVs have had some significant declining levels for five of the last eight weeks, this past week at -$97.</p>
<p> </p>
<p>The cars at an average segment change of -$81 this past week <a href="http://www.blackbookauto.com/video/summer-ends-continuing-trends" target="_blank">have been pretty steady</a> in this level of change as over the past six weeks the average weekly change has been -$76.With three car segments at over $100 declining amounts, the segment with the largest % change was again the Entry Level Cars at -1.35% or -$92, and now having the largest percentage drop for the past three weeks. We can’t just look at changes by dollars or percentage as the complete story needs both to clarify the picture. The segment with the largest dollar decline at -$127 was also the segment with the smallest percentage decline for the week at -.29%. Of course the Premium Sporty Cars also has the highest average segment price of $43038.</p>
<p> </p>
<p>It was a pretty active week in the market with the editors averaging changing the values in over 2079 vehicles each day throughout the week. The last time we adjusted this many in a week was the week ending August 1 with just over 2200 and then back last April 18th week with just over 2300 per day.</p>
<p> </p>
<p>The <a href="http://www.blackbookauto.com/video/summer-ends-continuing-trends" target="_blank">used market seems to making its move</a> and this time of the year it is being driven for the late model units due to another model year of vehicles coming into the market. Many of our survey personnel have pointed this out in their summary reports. As the editors have attended auctions this week, this is also a consistent comment. The positive side is that there is another model year coming so we will be seeing plenty of models with major changes, others with minor appearance or drive train changes and even a few totally new to the market. This past week I had to opportunity to drive a totally new model. It might not be a high volume but it is adding to a segment with a growing number of players. The e-Golf from Volkswagen is being brought to the retail market later this fall with a range of 70-90 miles in normal driving, and even up to 100 miles in E mode on a charge and with the capability to recharge in well under 4 hours. This is capable with the battery being rated as a 24.2 kilowatt battery. With the super charger you can get an 80% charge in only 30 minutes.</p>
<p> </p>
<p>The high volume Jetta is getting a refresh with visual changes on the front end grille, headlights and bumper and the rear view with revise tail lights and trunk lid. Also within the Jetta the 1.8L TSI engine gets 170HP while the 2.0L TDI gets an additional horsepower to a total of 150HP as well as an increase in fuel economy. With other content and safety features now included these products continue to be competitive players within their segments.</p>Major New Model Change Brings Strength To Old Styletag:www.automotivedigitalmarketing.com,2014-08-25:1970539:BlogPost:5536522014-08-25T15:19:33.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>Hello and welcome to this week’s edition of Beggs on the used Car Market, with data and insights on the used car market from Ricky Beggs and Black Book. What a week it has been with the editors being tuned into the online activity and getting on the physical auction lanes, while also getting to touch another majorly redesigned full-size utility, the 2015 Ford Expedition. We also had some interesting discussions within the industry regarding…</p>
<p>Hello and welcome to this week’s edition of Beggs on the used Car Market, with data and insights on the used car market from Ricky Beggs and Black Book. What a week it has been with the editors being tuned into the online activity and getting on the physical auction lanes, while also getting to touch another majorly redesigned full-size utility, the 2015 Ford Expedition. We also had some interesting discussions within the industry regarding <a href="http://www.blackbookauto.com/video/major-new-model-change-brings-strength-to-old-style" target="_blank">residual projections from Black Book</a>. As more cars are being leased, the analytics revolving around lender and leasing company portfolios continues to get increased attention.</p>
<p> </p>
<p>The movement in the market since the mid-point of 2014, and the <a href="http://www.blackbookauto.com/video/major-new-model-change-brings-strength-to-old-style" target="_blank">overall increasing depreciation</a>, has many talking about the level of current changes. I spent time this week in the field with several manufacturer representatives, and others connected to the rental industry, who are somewhat concerned about the visibility of the current changes. At least they did not disagree with the levels of changes being reported.</p>
<p> </p>
<p>One thing we as consumers also can’t complain about is the change in <a href="http://www.blackbookauto.com/video/major-new-model-change-brings-strength-to-old-style" target="_blank">gas prices at the pump</a>. We have had lower week over week prices for the past seven weeks, this week dropping by another $.03 to a national average price of $3.47, which is $.08 below year ago price levels. Hopefully this trend we are currently in will continue to match or even beat the low price of the past year of $3.19, which was during the week of November 11, 2013.</p>
<p> </p>
<p>The three smaller, more fuel efficient, and lower priced segments this past week had the <a href="http://www.blackbookauto.com/video/major-new-model-change-brings-strength-to-old-style" target="_blank">larger percentage decline</a> within the car segments. The Entry Level Cars at -1.62% and the Compact Cars and Entry Mid-size Cars both at -.65% were the better retention segments during most of the spring market. During the latter half of the year they are now catching up to their expected overall annual depreciation. In relation to current gas price trending, the demand for these more fuel efficient used models is not at the forefront.</p>
<p> </p>
<p>Just like the cars, the trucks had larger overall average segment decline this past week as compared to the prior week. <a href="http://www.blackbookauto.com/video/major-new-model-change-brings-strength-to-old-style" target="_blank">There was only one segment</a> with a weekly change of greater than -.5% as the Cargo Minivans were at -.91%. In the better retention side of the market the Full-size Passenger Wagons were at -$1 this past week and are in a four week average change of -$10 per week. We feel there is a solid reason for this level of strength. Often times a change in the new model will cause a significant variance in normal movement, sometimes increasing the interest and value, while other times devaluing the older model even more than normal. This full size van segment is showing positive strength, we feel due to the almost total revamping of the type of vehicles in this segment. It is far from being just a refreshening. Due to this change and the introduction of models like the Promaster, the Transit and the Sprinter, the last of the traditional full-size vans have brought renewed interest and thus higher used values in this segment.</p>
<p> </p>
<p>It seems the once daily announcements of another model being recalled have slowed tremendously. Recently Black Book took a look at some of the current recalls as well as some in previous years, and prepared a detailed white paper on the effects on the values of several models during and following the recalls. If you would like a full copy of this white paper, just drop me an email at <a href="mailto:rbeggs@BlackBookUSA.com" target="_blank">rbeggs@BlackBookUSA.com</a>. </p>
<p> </p>
<p>This coming weekend and into next Monday brings us two items of interest. The tradition of college football returns and the final summer holiday, Labor Day, will be celebrated. Until these occur, we will be back on the auction lanes, gathering and reporting the current market. Have a great day and week!</p>Total Recall: Is There Additional Risk From Recalled Vehicles in Your Portfolio?tag:www.automotivedigitalmarketing.com,2014-08-20:1970539:BlogPost:5535292014-08-20T13:00:00.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p> More than 37 million vehicles have been recalled so far in 2014. Will these recalls have an adverse impact to lender portfolios? I’d like to see if you have time to review new research from Black Book Lender Solutions that takes a closer look at what lenders might expect. <strong><a href="https://www.facebook.com/BlackBookUSA?ref=hl" target="_blank">Click here to download the report</a>.</strong></p>
<p></p>
<p>While safety has understandably been the main concern with these and most…</p>
<p> More than 37 million vehicles have been recalled so far in 2014. Will these recalls have an adverse impact to lender portfolios? I’d like to see if you have time to review new research from Black Book Lender Solutions that takes a closer look at what lenders might expect. <strong><a href="https://www.facebook.com/BlackBookUSA?ref=hl" target="_blank">Click here to download the report</a>.</strong></p>
<p></p>
<p>While safety has understandably been the main concern with these and most vehicle recalls, how has vehicle retention fared following these situations? When a particular vehicle undergoes a recall, should auto lenders steer clear of the vehicles when determining their portfolio expansion strategies? Black Book Lender Solutions’ new white paper analyzes several recalls in recent history to help auto lenders make the right decision for their portfolios:</p>
<ul>
<li>2008 &amp; 2009 Toyota Camry retention pattern following the 2009 “unintended acceleration” recall</li>
<li>2000 Ford Explorer retention pattern following the 2000 rollover crisis</li>
<li>2005 &amp; 2006 Chevy Cobalt retention pattern following the 2014 GM ignition system recall</li>
<li>2013 Ford Escape retention pattern following the EcoBoost engine fires</li>
</ul>
<p></p>
<p>Black Book® is best known in the automotive industry for providing timely, independent and accurate vehicle pricing information, and is available to industry-qualified users through online subscription products, mobile applications and licensing agreements. A leading provider since 1955, Black Book has continuously evolved to ensure that it achieves its goal of delivering mission-critical information to its customers, along with the insight necessary to successfully buy, sell, and lend. Black Book data is published daily by National Auto Research, a division of Hearst Business media, and the company maintains offices in Georgia, Florida, and Maryland.</p>Fewer Adjustments, Smaller Declines In Valuestag:www.automotivedigitalmarketing.com,2014-08-19:1970539:BlogPost:5532272014-08-19T13:01:44.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>Welcome to this week’s edition of Beggs on the Used Car Market, with insights from Ricky Beggs and Black Book. We trust each of you had a busy and profitable week. Our team of editors, analysts and survey personnel were on the lanes and online gathering market data and studying loads of actual transactions, while reporting the current market.</p>
<p> </p>
<p>By the end of the week the summaries of data showed us a…</p>
<p>Welcome to this week’s edition of Beggs on the Used Car Market, with insights from Ricky Beggs and Black Book. We trust each of you had a busy and profitable week. Our team of editors, analysts and survey personnel were on the lanes and online gathering market data and studying loads of actual transactions, while reporting the current market.</p>
<p> </p>
<p>By the end of the week the summaries of data showed us a <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-08-14-2014" target="_blank">continuing soft market</a> with still only about 17% of the adjustments being increases. Two things caught my attention this past week. One was that both the average segment change for the cars and the trucks had smaller levels of declines than the previous week and number two, even though the market softness continues, the number of vehicles needing adjustment was the lowest in the past five weeks, at only 1430 on average per day throughout the week.</p>
<p> </p>
<p>The cars average segment change of -$60, the <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-08-14-2014" target="_blank">lowest in the past five weeks</a> was just $3 more than the same week one year ago. The lowest dollar changing segment this past week was the Entry Mid-size Cars at -$33, which was also the best week over week adjustment level improvement from the -$98 the prior week. For the most consistent week to week changes the three more luxury type segments have different average changes of only $1 to $3 within the Near Luxury, Luxury Level and the Prestige Luxury Cars.</p>
<p> </p>
<p>The trucks average segment change of -$34 is the lowest average segment change over the past six weeks. If you are a seller, the segment you might want to have some models to put into the wholesale market would have to be the Full-size Vans, both passenger and cargo versions, as there have been <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-08-14-2014" target="_blank">positive change levels the past two weeks</a>. One year ago both Full-size Van configurations were also positive level changes. </p>
<p> </p>
<p>On the opposite end of the adjustment level, the truck based large utilities, the Full-size SUVs at -$117 and the Luxury SUVs at -$105, are getting the largest changes for the week. A year ago the Luxury SUVs were a similar -$103 adjustment. The Compact Pickups and the Compact SUVs continue to be the most stable segments over the past 3 to 4 weeks. These two better performing segments also happen to be segments made up of fewer choices or models and volumes within the vehicles making up the segments.</p>
<p> </p>
<p>Both gas and diesel prices at the pump continue to decline, both fuel types by another penny week over week to $3.50 for gas and $3.84 for diesel. And both now 6 cents less than year ago levels and also six consecutive weeks of dropping pump prices.</p>
<p>As we look at the pattern of used vehicle prices we <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-08-14-2014" target="_blank">anticipate the softness to continue</a>. The one and two year old models should be getting the largest level of adjustments as well as the most limited interest from the buyers. As we move into the fall of the year, expect a more focused effort from the manufacturers to keep market share by bumping up various incentive offerings. </p>
<p> </p>
<p>And speaking of new market vehicles, we had the opportunity to get a hands on feel and insight into another new model this past week. Acura has decided to take two different models, the TSX and the TL, and blend the size and styling into the new TLX model. With interior size of the outgoing TL and blending it with a smaller exterior package, they have created a still comfortable, yet, sportier vehicle. Throw into two engines – a 4 cylinder and a 6 cylinder along with new transmissions and Acura has an offering that expands the potential buyer base.</p>Gas Price Point To Move The Market?tag:www.automotivedigitalmarketing.com,2014-08-11:1970539:BlogPost:5525342014-08-11T20:13:50.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>Welcome to this week’s edition of <a href="http://www.blackbookauto.com/video/gas-price-point-to-move-the-market" target="_blank">Beggs on the Used Car Market</a>, with insight and analysis from Ricky Beggs, Editorial Director of Black Book.</p>
<p> </p>
<p>During the past week new car sales reports were released and this portion of the industry continues to prosper. Within the new car market there has been for the past year or so, and is currently, a steady stream of new models, major…</p>
<p>Welcome to this week’s edition of <a href="http://www.blackbookauto.com/video/gas-price-point-to-move-the-market" target="_blank">Beggs on the Used Car Market</a>, with insight and analysis from Ricky Beggs, Editorial Director of Black Book.</p>
<p> </p>
<p>During the past week new car sales reports were released and this portion of the industry continues to prosper. Within the new car market there has been for the past year or so, and is currently, a steady stream of new models, major redesigns and solid refreshes. The pipeline of even more exciting models is backed up and just waiting to arrive at showrooms representing almost every manufacturer. Part of the Black Book Editors’ efforts is focused on the extensive processes involved in projecting residual values for the industry for leasing and risk analysis. Getting direct product insight from the manufacturers enables us to <a href="http://www.blackbookauto.com/video/gas-price-point-to-move-the-market" target="_blank">make solid projections</a>. This past week the weather in Michigan could not have been any better, but unfortunately we did not get to do any evaluations on the Michigan International Speedway track.</p>
<p> </p>
<p>At some point each of the new models will hit the used market and at that point we will be knowledgeable of these models and their various trim levels and content that affects value.</p>
<p> </p>
<p>Let’s take a look at what transpired in the wholesale channels this past week. Gas prices <a href="http://www.blackbookauto.com/video/gas-price-point-to-move-the-market" target="_blank">continue to be in favor of the consumer</a> with their recent steady decline. This past week they fell another 2.4 cents to a national average of $3.52 per gallon which is $.11 below year ago prices. More of a recognizable change is the $.19 drop since the first of July. This is not a big enough change or at a price point to drive the market values in either direction for any specific models or segments. I was even asked this past week what was a price point that would be a moving factor for market values and sales pattern changes. Unfortunately this was asked in a tone of thinking higher gas prices rather than lower price points. We feel it is not just a certain price point of gas at the pump, but just as much as to how quick it moves, what if any specific factor is considered a cause, and does it stay at the new price point for an extended period of time or head down almost as quick as it went up. For right now there is no need to sweat any increases at the pump.</p>
<p> </p>
<p>Taking a look at the car segments, the -$72 or -.43% change this past week was the <a href="http://www.blackbookauto.com/video/gas-price-point-to-move-the-market" target="_blank">lowest level of decline in the past three weeks</a>. But compared to the year ago change of -$43, it is still a pretty actively moving market. The change in values was pretty consistent across the board as seven of the ten car segments had lower declining levels compared to the prior week. On the softer segments, the Full-size Cars at -$111 and the Entry Mid-size Cars at -$98, represent some pretty substantial adjustments, and we will be watching these segments even closer this coming week. The most stable segment within the cars in a change level, was the Compact Cars at -$28.</p>
<p> </p>
<p>The truck segment overall change was only slightly greater than the previous week coming in at -$49 or -.31% versus -$45 the prior week. A segment that continues to adjust in larger than normal levels is the Full-size Crossovers at -$161 this past week and a two week average of -$130 and a five week average of -$113. We may have a seasonal type change as one year ago the segment had a -$98 change. The Compact Pickups are steady in their change level, but at significantly lower levels of decline at -$3 this past week and a five week average change of -$15. The Compact SUVs are not much softer than the Compact Pickups, coming in at -$16 this past week and a five week average of only -$24. Overall consistency is the pattern in the trucks as the average segment change this past week of -$49 matches the five week average -$49.</p>
<p> </p>
<p>Even though the percentage of increasing adjustments is relatively low at only 18%, the average increasing adjustment was the highest in the past five weeks at +$168. On the other side with the decreasing adjustments at 82% of all adjustments, the average change of -$160 was the lowest amount of decline over the past eight weeks.</p>SMALLER & MIDSIZE CARS LEAD JULY USED VEHICLE DEPRECIATIONtag:www.automotivedigitalmarketing.com,2014-08-07:1970539:BlogPost:5518562014-08-07T12:53:46.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>According to Black Book® data, the average price of a used vehicle for model years 2009-2013 continued a pattern of accelerating depreciation, with -1.5% overall value change in July compared with June activity of -1.0%. Domestic cars changed -2.5%; import cars changed -1.6%; domestic trucks changed -1.5%; and import trucks changed -1.0%. Average pre-recession depreciation is historically between -1% and -2% monthly, and Black Book expects overall 2014 depreciation of -13.5%.…<br></br> <br></br></p>
<p>According to Black Book® data, the average price of a used vehicle for model years 2009-2013 continued a pattern of accelerating depreciation, with -1.5% overall value change in July compared with June activity of -1.0%. Domestic cars changed -2.5%; import cars changed -1.6%; domestic trucks changed -1.5%; and import trucks changed -1.0%. Average pre-recession depreciation is historically between -1% and -2% monthly, and Black Book expects overall 2014 depreciation of -13.5%.<br/> <br/> After a strong spring and early summer where cars and trucks showed stable and strengthened retention rates, the recent summertime activity has shown accelerated depreciation patterns led in part by smaller and mid-size cars, as well as luxury cars. <br/> <br/> Each of the twenty-four vehicle segments showed depreciation in July, with Full-Size Passenger Vans showing the strongest monthly retention rate of -0.3%. Compact Pickups were the next-strongest segment with -0.5% retention. Vehicles in this segment include the Nissan Frontier, Ford Ranger and Toyota Tacoma. The average segment price at the end of July was $15,955, a -6.6% change from year-ago levels ($17,078).<br/> <br/> For the second straight month, Premium Sporty Cars led all car segments with the lowest depreciation at -0.9% on the month. Vehicles in this segment include the BMW 6-Series, Mercedes-Benz CL-Class, BMW M6, Audi R8, Audi S8, Mercedes-Benz SL-Class and the Cadillac XLR. The average segment price at the end of July was $48,681, a -12.4% change from year-ago levels ($55,560).<br/> <br/> Upper Mid-Size Cars led all segments with the highest monthly depreciation at -3.0%. Vehicles in this segment include the Honda Accord, Nissan Altima, Toyota Camry, Volkswagen CC, Buick LaCrosse, Volkswagen Passat, and the Ford Taurus. The average segment price at the end of July was $12,005, a -12.4% change from a year ago ($13,699).<br/> <br/> Full-Size SUVs led all truck segments with the highest depreciation at -2.1% in July. Vehicles in this segment include the Nissan Armada, Jeep Commander, Dodge Durango, Ford Expedition, Toyota Sequoia, Chevrolet Suburban and GMC Yukon. The average segment price at the end of July was $24,410, a -8.0% change from a year ago ($26,526).<br/> <br/> Eleven of the thirteen strongest-performing segments during July were truck categories (Sporty Car -1.5%, Premium Sporty Car -0.9%). <br/> <br/> “The market is beginning to feel the impact from incoming 2015 models and still-low fuel prices, which are combining to elevate depreciation levels especially for smaller car segments,” said Ricky Beggs, Editorial Director at Black Book. “We anticipate this trend of accelerating depreciation will continue through the rest of the year, with smaller cars and luxury segments seeing higher levels of depreciation.”</p>
<p>Black Book® is best known in the automotive industry for providing timely, independent and accurate vehicle pricing information, and is available to industry-qualified users through online subscription products, mobile applications and licensing agreements. A leading provider since 1955, Black Book has continuously evolved to ensure that it achieves its goal of delivering mission-critical information to its customers, along with the insight necessary to successfully buy, sell, and lend. Black Book data is published daily by National Auto Research, a division of Hearst Business media, and the company maintains offices in Georgia, Florida, and Maryland.</p>That Fifth Week Of The Month Markettag:www.automotivedigitalmarketing.com,2014-08-04:1970539:BlogPost:5516062014-08-04T15:13:57.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>Hello and welcome to this week’s edition of <a href="http://www.blackbookauto.com/video/that-fifth-week-of-the-market" target="_blank">Beggs on the Used Car Market</a>, with data and analysis from Ricky Beggs of Black Book. </p>
<p> </p>
<p>Another month has passed and the overall movement this past week took pretty much the same direction as the previous four weeks. About the only difference is the level of declining amount continues to get larger week over week.</p>
<p> </p>
<p>Looking at…</p>
<p>Hello and welcome to this week’s edition of <a href="http://www.blackbookauto.com/video/that-fifth-week-of-the-market" target="_blank">Beggs on the Used Car Market</a>, with data and analysis from Ricky Beggs of Black Book. </p>
<p> </p>
<p>Another month has passed and the overall movement this past week took pretty much the same direction as the previous four weeks. About the only difference is the level of declining amount continues to get larger week over week.</p>
<p> </p>
<p>Looking at the ten car segments each week since the week ending July 4th, the overall <a href="http://www.blackbookauto.com/video/that-fifth-week-of-the-market" target="_blank">average segment change</a> has steadily increased from -$45 for the holiday week to a high point for the whole past year at -$86 this past week. At a -.51% change this past week, the four week average is at -.43%. This comes in at a total change of -1.7%, slightly over traditional pre-recession monthly change levels.</p>
<p> </p>
<p>There are three segments that are <a href="http://www.blackbookauto.com/video/that-fifth-week-of-the-market" target="_blank">trending softer than most</a> in dollar levels. The Prestige Luxury Cars at -$183 this past week, have a four week average change of -$131 and lead the pack. The Premium Sporty Cars at -$184 this past week, the largest decline, have a four week average change of -$121. The third segment is the Luxury Level Cars at -$110 this past week and a four week average of -$87. The percentage change for this segment has averaged -.5% per week for the past four weeks. Think a -2% change for a month at this rate.</p>
<p> </p>
<p>When looking at the overall percentage change, some of the smaller, less expensive and also more fuel efficient models are taking the lead in this form of change. All average at least a -.5% decline per week over the past month. The Compact Cars at -.5%, the Entry Mid-size Cars at -.56%, with the Upper Mid-size Cars with an even larger drop at -.61%, couldn’t touch the percentage change of the Entry Level Cars at -.8%.</p>
<p> </p>
<p>The fourteen truck segments actually improved overall in the <a href="http://www.blackbookauto.com/video/that-fifth-week-of-the-market" target="_blank">average change by segment</a> this past week compared to the previous two weeks. At a four week average of -$49, this past week was only -$45.</p>
<p> </p>
<p>There are five truck related segments with an average change of -$60 or more for the past four weeks and an interesting note is that with four of these five the most recent weekly change amount was the lowest declining level. Of the five only the Full-size Crossovers, with a four week average change of -$101, and -$98 this past week was not the lowest weekly change level of the past month.</p>
<p> </p>
<p>Compared to some of the segment percentage changes of the cars the trucks look in much better shape with only the Compact Crossovers at -.48% and the Full-size Crossovers at -.47% even came close to the -.5% level with the overall trucks change of -.32%.</p>
<p> </p>
<p>There is a lot of movement within the market in values as the Black Book Editors adjusted on average throughout the week 2222 vehicles per day. The last time the movement was that active was the week ending April 18, 2014. One year ago the number of adjustments stood at only 1624 per day. This past week the percentage of increasing adjustments was only 22% whereas the active week in April was a whopping 75%, and one year ago more similar to this past week with only 19% increasing.</p>
<p> </p>
<p>Let’s don’t forget the gas prices. There is still no increasing demand being created for the hybrids, electrics and smaller more fuel efficient ICE models due to gas prices. Gas prices dropped by another $.05 this past week, and now stand $.11 below year ago prices. This is the lowest point since the week of March 10, but still a way to go to hit the low point for the past 52 weeks of $3.19 for the week of November 11, 2013.</p>
<p> </p>
<p>Why the significant overall movement in vehicle values this past week and month? Part is the adjustments to get ready and create a space for a new model year of vehicles to come into the market. But while looking at all of the comments from the auction lanes and market reports and comparing those of this week to the prior week, we found a totally different tone. There were more upbeat comments of “steady, busy, and larger crowds” from two weeks ago to expressions of “a tough day, softer buyers and trying to make a correction” this past week. I then took a look at the July calendar and we just went through not only the last week of the month but the fifth week of the month. I wouldn’t be a bit surprised to see a better trend reappear this coming week.</p>Summer Market In Full Force While Heading To Falltag:www.automotivedigitalmarketing.com,2014-07-28:1970539:BlogPost:5510032014-07-28T15:16:48.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>Welcome to this week’s edition of Beggs on the Used Car Market, with <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-07-28-2014" target="_blank">analysis</a> from Ricky Beggs and Black Book. As the calendar is closing out the month of July the market is indicating a variety of actions. The smaller and more fuel efficient models are getting some attention again after softening for just over a month once the tax season expired. Even some of the six to eight year old…</p>
<p>Welcome to this week’s edition of Beggs on the Used Car Market, with <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-07-28-2014" target="_blank">analysis</a> from Ricky Beggs and Black Book. As the calendar is closing out the month of July the market is indicating a variety of actions. The smaller and more fuel efficient models are getting some attention again after softening for just over a month once the tax season expired. Even some of the six to eight year old models are again needed for the retail market. If you are looking for some twelve to eighteen month old off rental units you are looking at a segment of the market that might just be the most unstable in value right now. To understand this <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-07-28-2014" target="_blank">market movement</a>, just remember to look at the calendar and you see August and September bringing us another model year into the market. Overall the market is softening, because as one Black Book survey person commented in his report “the buying dealers are not complaining, so the market must be softening.”</p>
<p> </p>
<p>As the market values are falling, and contrary to the smaller more fuel efficient models being the more stable segments in the market, as I mentioned earlier, gas prices continue to decline. This past week gas fell by another $.04 to $3.59, which is $.09 below the $3.68 price per gallon of one year ago.</p>
<p> </p>
<p>Overall the cars average segment change this past week was -$81, almost twice the level of change of -$42 one year ago. Only once in the past year has the <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-07-28-2014" target="_blank">average segment change</a> been at a greater declining level, and that was the -$84 for the week ending September 20, 2013.</p>
<p> </p>
<p>The car segment with the lowest weekly declining level was the Near Luxury Cars at -$31 or a -.20% change. This is a segment that has been declining greater than the overall car segment change for the previous five weeks. Interesting enough is that this same segment of Near Luxury Cars, which includes vehicles such as the Audi A4, the Cadillac CTS, Lexus ES350 and even the Lincoln MKZ, one year ago, was also the <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-07-28-2014" target="_blank">lowest declining segment</a> within the cars.</p>
<p> </p>
<p>As has been the case for every week since the week ending February 28, 2014, the level of change for the trucks has been less than the cars. But similar to the cars the trucks are softening even more as the summer weeks pass coming in at -$59 this past week, the largest weekly decline for the trucks since the week ending February 21st.</p>
<p> </p>
<p>After a rather large decline for the Compact Pickups of -$50 two weeks ago, this segment bounced back with only a $2 declining change this past week, and similar to the -$4 change of one year ago.</p>
<p> </p>
<p>On the softer side of the trucks, the large truck based utilities, the Full-size SUVs and the Luxury SUVs had the largest declining levels of any segment for the past three months. Respective changes of -$149 and -$148 for these SUVs this past week are similar to the levels of change we have seen this past week, and several times with the Prestige Luxury Cars and the Premium Sporty Cars. </p>
<p> </p>
<p>The first half of the year overall brought us a very strong market in relation to the level of depreciation of only about -4%. As the economy and the new car sales continue to improve our forecast of annual depreciation for 2014 we feel will be greater than the solid -12.8% of 2013. We have projected an annual depreciation of -13.5% for 2014 so the current levels of change in the past few weeks are indicating a market that looks to make up for the really strong first half of the year and actually reach that previously projected -13.5% level for the entire calendar year. So keep an eye on the expected changing market values as we head toward 2015 on the calendar. </p>
<p> </p>
<p>The Black Book Editors and survey personnel will be back online and on the lanes again this week getting the pulse of the market. When you see them on the lanes let us know how you see the market.</p>BLACK BOOK ADDS ANIL GOYAL TO EXECUTIVE TEAMtag:www.automotivedigitalmarketing.com,2014-07-23:1970539:BlogPost:5502442014-07-23T18:32:51.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>Black Book announces the addition of Anil Goyal to its executive team serving as Vice President of Analytics and Strategic Relationships. Best known for providing timely, independent and accurate vehicle valuation data, the addition of Mr. Goyal enables Black Book to broaden its reach into data and trend analysis for customers in a variety of leading industries. <br></br> <br></br> Mr. Goyal comes to Black Book with a deep background in strategy and has held a number of senior positions in the…</p>
<p>Black Book announces the addition of Anil Goyal to its executive team serving as Vice President of Analytics and Strategic Relationships. Best known for providing timely, independent and accurate vehicle valuation data, the addition of Mr. Goyal enables Black Book to broaden its reach into data and trend analysis for customers in a variety of leading industries. <br/> <br/> Mr. Goyal comes to Black Book with a deep background in strategy and has held a number of senior positions in the banking industry, including senior risk positions at Bank of America and senior marketing positions at Citigroup. Most recently, he served as the COO and CFO of Corserv Solutions, a company he co-founded in 2009 that provides credit card portfolio services and analytics to community financial institutions.<br/> <br/> “Our customers rely on Black Book for the industry’s most accurate data to help them make profitable business decisions each day,” said Tom Cross, President of Black Book. “With the addition of Anil, Black Book complements this data with a deeper reach into trend analysis that provides further decision-making context for our customers.”<br/> <br/> Black Book’s legacy has evolved from a trusted provider of printed vehicle valuation information to a leading data company that is driven by intelligent resources. With Mr. Goyal, Black Book offers customers a new level of knowledge and insight into the trends shaping today’s valuation data. His expertise is a major asset to customers seeking deeper engagements in advanced data analytics platforms: Automotive manufactures and dealers seeking vehicle valuation data, lenders identifying the right risk for portfolio expansion and data purveyors across leading industries.<br/> <br/> Mr. Goyal has a Ph.D. in Decision Sciences and a M.S. in Operations Research from Rensselaer Polytechnic Institute, and a Bachelor’s Degree with Honors from Indian Institute of Technology. He resides in Atlanta with his wife and two children.</p>
<p>Black Book is best known in the automotive industry for providing timely, independent and accurate vehicle pricing information, and is available to industry-qualified users through online subscription products, mobile applications and licensing agreements. A leading provider since 1955, Black Book has continuously evolved to ensure that it achieves its goal of delivering mission-critical information to its customers, along with the insight necessary to successfully buy, sell, and lend. Black Book data is published daily by National Auto Research, a division of Hearst Business media, and the company maintains offices in Georgia, Florida, and Maryland.</p>Gas Prices Decline And So Does The Markettag:www.automotivedigitalmarketing.com,2014-07-21:1970539:BlogPost:5500852014-07-21T20:00:00.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>Here are the latest trends and insights on the <a href="http://www.dev-blackbookauto.com/video/gas-prices-decline-and-so-does-the-market" target="_blank">used car market</a> according to Black Book data and Ricky Beggs. The market continues the more traditional seasonal movements and for the first three weeks of July the average change amount has increased within the cars and trucks. This past week the cars average segment change was -$68 as compared to the previous two weeks of -$56 and…</p>
<p>Here are the latest trends and insights on the <a href="http://www.dev-blackbookauto.com/video/gas-prices-decline-and-so-does-the-market" target="_blank">used car market</a> according to Black Book data and Ricky Beggs. The market continues the more traditional seasonal movements and for the first three weeks of July the average change amount has increased within the cars and trucks. This past week the cars average segment change was -$68 as compared to the previous two weeks of -$56 and -$45. This past week at the -$68 change was the largest declining movement since the week ending January 24, 2014 at -$72. For comparison purposes, the year ago change level was only -$41. After such a strong Spring market, the remainder of the year may possibly see slightly larger declines as compared with typical seasonal patterns.</p>
<p> </p>
<p>The smallest dollar level declining segment this past week within the cars was the Compact Cars at -$33. This has also been the <a href="http://www.dev-blackbookauto.com/video/gas-prices-decline-and-so-does-the-market" target="_blank">most consistent moving segment</a> during July with -$31 and -$20 the prior two weeks.</p>
<p> </p>
<p>The truck segments are trending in the same direction but at slightly lower amounts of decline. This past week the average change was -$54 following smaller declines of -$39 and -$20 the prior two weeks. The last time the decline for the trucks was greater than this past week was the week ending February 21 when the level of change was -$67. </p>
<p> </p>
<p>Several truck related segments have been fairly consistent in their weekly movement during July with the Full-size Passenger Wagons changing by -$10, -$2 and -$2, the Full-size Pickups at -$20, +$6 and -$19 for the past three weeks. Also during July the Minivans have declined a little more, but at consistent weekly changes of -$32 this past week and -$36 and -$22 the prior two weeks.</p>
<p> </p>
<p>There were over <a href="http://www.dev-blackbookauto.com/video/gas-prices-decline-and-so-does-the-market" target="_blank">1900 vehicles adjusted</a> on average each day throughout the past week, perhaps from some buildup from the holiday a couple of weeks ago. This level was the most per day since the week of May 16 when we made just over 2000 per day. During that week 44% of the changes were increases where this past week only 22% were increasing adjustments.</p>
<p> </p>
<p>With all of the changes and the number up and down the overall dollar change week over week is a decline of -$103. This is the largest weekly declining amount since the -$108 for the week ending January 24th during some of the almost forgotten brutal winter weather. One year ago the average weekly change was even greater at -$127 when only 14% of the changes were increasing value adjustments. So even with the level of changes today we still have a pretty solid and active market within the wholesale channels.</p>
<p> </p>
<p>Within all of these changes there were also eleven 2014 models that received their first market driven wholesale values being made up of a variety of vehicles that came from nine different segments. So now is a great time to check some of the vehicles that fit your market segment for these fresh values.</p>
<p> </p>
<p>There is other movement that is always of interest and that relates to the price of gas and diesel fuel. After all the hype in July about increasing gas prices at $3.64 per gallon we are almost a half a cent less than the year ago period after the 4.3 cent drop this past week. Diesel even dropped 1.9 cents and at $3.89 at the pump on a national average that is only 2.7 cents over year ago levels.</p>
<p> </p>
<p>This past week I had the opportunity to get out on the auction lanes at the two day special auction event and the 19th Annual DAA Northwest Rock N Roll event. With two days of tremendous auction activity surrounding an industry famous rock concert, the whole team at DAA Northwest throws one of the best events in the industry for their dealers and consigners.</p>
<p> </p>
<p>As part of this special event, class number three of the Auction Academy, administered by TPC Management, held their second session. The auction professionals in this program are growing leaders of the auction industry. We had the opportunity to present the current market conditions to the group and also listen to some of the other presenters to this team. With insight into the market from the leadership of DAA Northwest on how to put on a special event for the auction customers, the Auction Edge team, Harley Davidson Financial Remarketing and even Bobit Business Media, these students of the Academy are getting valuable insight into all phases of the auction industry. Training is so important to all of us in our work and there are so many groups, associations and alliances that offer these type of learning opportunities. Our Editorial team at Black Book last year completed the IARA CAR program and I know some of the fleet industry offers training through AFLA and NAFA. Reach out to us and we will be glad to provide some of the contact info for these groups.</p>
<p> </p>
<p>Lastly, be sure to check out the latest in-depth <a href="http://www.blackbookauto.com/lender-solutions/fitch-report-q2-14/" target="_blank">vehicle depreciation report</a>, a joint venture between Black Book and Fitch Ratings. It is available at our website, BlackBookAuto.com.</p>BLACK BOOK & FITCH RATINGS RELEASE LATEST VEHICLE DEPRECIATION REPORTtag:www.automotivedigitalmarketing.com,2014-07-17:1970539:BlogPost:5498692014-07-17T19:00:00.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p><span class="font-size-3"><strong><a href="http://www.automotivedigitalmarketing.com/profiles/blogs/black-book-fitch-ratings-release-latest-vehicle-deperciation" target="_blank"><img class="align-full" src="http://api.ning.com:80/files/KtF-s5LKrmEX3fgey63-3ssR3BA-JGYOY41gNSp*KR168JEpEp8-XwdzFGqrnDMK5RkDnZnxARijKHletZ9dt*TYSR-8Ng8D/BlackBookFitchGroup.jpg?width=750" width="750"></img></a> Used Vehicle Depreciation Rates Rise To Recession Levels</strong></span></p>
<p>Depreciation rates on used vehicles are nearing levels not seen since the recession, though the trend will soon reverse and likely lead to marginally higher losses for U.S. auto ABS, according to the latest joint vehicle…</p>
<p><span class="font-size-3"><strong><a target="_blank" href="http://www.automotivedigitalmarketing.com/profiles/blogs/black-book-fitch-ratings-release-latest-vehicle-deperciation"><img class="align-full" src="http://api.ning.com:80/files/KtF-s5LKrmEX3fgey63-3ssR3BA-JGYOY41gNSp*KR168JEpEp8-XwdzFGqrnDMK5RkDnZnxARijKHletZ9dt*TYSR-8Ng8D/BlackBookFitchGroup.jpg?width=750" width="750"/></a>Used Vehicle Depreciation Rates Rise To Recession Levels</strong></span></p>
<p>Depreciation rates on used vehicles are nearing levels not seen since the recession, though the trend will soon reverse and likely lead to marginally higher losses for U.S. auto ABS, according to the latest joint vehicle depreciation report from Black Book® and Fitch Ratings. <a href="http://www.blackbookauto.com/lender-solutions/fitch-report-q2-14/" target="_blank">Click here to download the full report</a>.<br/> <br/> <strong>According to Black Book, both new and used vehicle markets are seeing positive growth after hitting a low of 10.3 million new vehicle sales in 2009.</strong> As a result, depreciation has increased every year since 2011. Black Book projects new vehicles sales to finish north of 16 million units this year and at least 16.5 million in 2015. “As a result, annual depreciation levels on used vehicles will begin climbing to roughly 13% in 2014 and 15% in 2015,” said Black Book Senior Vice President and Editorial Director, Ricky Beggs.<br/> <br/> <strong>Among the highlights from the latest joint report, auto depreciation is expected to rise above 13% in 2014.</strong> This level is still below the average pre-recession depreciation rate of between 15-18% annually. Fitch points out that rising interest rates, not likely to occur until 2015, can result in higher vehicle depreciation if this were to dent consumer demand for new and used vehicles.<br/> <br/> <strong>In the auto lease ABS sector, rising supply from off-lease volumes in 2014 will contribute to higher depreciation in 2014, and pressure residual value (RV) losses.</strong> This is not expected to pose any material threat to overall asset performance nor outstanding ratings. In the rental car ABS sector, rental car company fleet depreciation rates will creep up, but stay within the historical range of 1.0%-2.0% per month, depending on each rental car company’s fleet mix. <br/> <br/> Housing and service industries will continue to be a net positive for larger vehicle sales and retention levels, although trucks and later-model vehicles are exhibiting higher-than-normal valuation volatility. <br/> <br/> The Black Book-Fitch vehicle depreciation report is a joint venture by the two companies utilizing Black Book’s used vehicle depreciation data.</p>
<blockquote><p>“Auto lenders are continuously searching for ways to leverage collateral data and valuation insights in order to identify the right portfolio expansion opportunities,” said Tom Cross, President of Black Book.</p>
</blockquote>
<p>Black Book tracks used vehicle market depreciation rates providing an understanding of how vehicle prices impact automobile lenders and lessors, auto ABS transactions, consumers and other auto market constituents.</p>
<blockquote><p>“Leading collateral data and vehicle valuation trends from Black Book are valuable to the auto lender community as they look to effectively manage risk potential,” said Hylton Heard, Senior Director of Fitch Ratings.</p>
</blockquote>
<p><strong>The Black Book-Fitch Vehicle Depreciation Report is <a href="http://www.blackbookauto.com/lender-solutions/fitch-report-q2-14/" target="_blank">available for download by clicking here</a>.</strong><br/> <br/> <b><span class="font-size-3">About Fitch Group</span><br/></b> Fitch Group is a global leader in financial information services with operations in 34 countries. The Group includes: Fitch Ratings, Inc., a global leader in credit ratings and research; Fitch Solutions, a leading provider of credit market data, analytical tools and risk services; and Fitch 7city Learning, a global leader in financial training. Fitch Group is 50% owned by Paris-based Fimalac, S.A., and 50% owned by New York-based Hearst Corporation.<br/> <br/> <b><span class="font-size-3">About Black Book</span><br/></b> Black Book® is best known in the automotive industry for providing timely, independent and accurate vehicle pricing information, and is available to industry-qualified users through online subscription products, mobile applications and licensing agreements. A leading provider since 1955, Black Book has continuously evolved to ensure that it achieves its goal of delivering mission-critical information to its customers, along with the insight necessary to successfully buy, sell, and lend. Black Book data is published daily by National Auto Research, a division of Hearst Business media, and the company maintains offices in Georgia, Florida, and Maryland. For more information, please visit BlackBookAuto.com or call 800.554.1026.</p>JUNE USED VEHICLE DEPRECIATION MORE THAN DOUBLES COMPARED WITH MAY LEVELStag:www.automotivedigitalmarketing.com,2014-07-08:1970539:BlogPost:5479542014-07-08T14:20:46.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>According to Black Book® data, the average price of a used vehicle for model years 2009-2013 overall saw larger depreciation in June compared with the previous two months, signaling typical summertime patterns. Average segment prices saw -1.0% depreciation in June compared with May levels of -0.4%. Domestic cars changed -2.0%; import cars changed -1.4%; domestic trucks changed -0.5%; and import trucks changed -0.8%. Average pre-recession depreciation is historically between -1% and -2%…</p>
<p>According to Black Book® data, the average price of a used vehicle for model years 2009-2013 overall saw larger depreciation in June compared with the previous two months, signaling typical summertime patterns. Average segment prices saw -1.0% depreciation in June compared with May levels of -0.4%. Domestic cars changed -2.0%; import cars changed -1.4%; domestic trucks changed -0.5%; and import trucks changed -0.8%. Average pre-recession depreciation is historically between -1% and -2% monthly, and Black Book expects overall 2014 depreciation of -13.5%.<br/> <br/> Mid-Size Pickups led all segments with the strongest monthly retention at +1.1%, followed by Cargo Minivans at +0.5%. Mid-Size Pickups include the GMC Canyon, Chevrolet Colorado, Dodge Dakota and Honda Ridgeline. The average segment price at the end of June was $17,758, a -6.3% change from year-ago levels ($18,952).<br/> <br/> Premium Sporty Cars led all car segments with the lowest depreciation change at -0.6% on the month, and the only car segment in the top-12 for segment depreciation performance. Vehicles in this segment include the BMW 6-Series, Mercedes-Benz CL-Class, Chevrolet Corvette, Nissan GT-R, Mercedes-Benz SL-Class and Cadillac XLR. The average segment price at the end of June was $49,136, a -12.3% change from year ago levels ($56,048).<br/> <br/> Entry Mid-Size Cars led all segments with the highest depreciation at -2.7% during June. Vehicles in this segment include Ford Fusion, Volkswagen Jetta, Chevrolet Malibu, Toyota Prius, Buick Regal and Chevrolet Volt. The average segment price at the end of June was $12,539, a -11.4% change from year-ago levels ($14,155).<br/> <br/> Compact Crossovers and Passenger Minivans led all truck segments with the largest depreciation in June (-1.4%). Vehicles in the Compact Crossover segment include the Honda CR-V, Mazda CX-7, Ford Escape, Jeep Patriot, Toyota Rav4 and Nissan Rogue. The average segment price at the end of June was $14,968, a -10.9% change from year-ago levels ($16,808).<br/> <br/> Only three of the twenty-four total car and truck segments finished the month with a positive value change: Mid-Size Pickups (+1.1%); Cargo Minivans (+0.5%); and Full-Size Pickups (+0.1%). <br/> <br/> Six vehicle segments, all cars, had a monthly depreciation change higher than -1.5%, compared with none at this rate in May: Entry Mid-Size Cars (-2.7%); Compact Cars (-2.5%); Full-Size Cars (-2.4%); Upper Mid-Size Cars (-1.8%); Entry-Level Cars (-1.8%); and Sporty Cars (-1.6%). <br/> <br/> “The annual depreciation patterns typically see larger value changes in the second half of each year, and we’ve seen this begin to pick up the pace over the last 45-60 days,” said Ricky Beggs, Editorial Director at Black Book. “We will keep a watchful eye on how gas prices and the new model year impact this pace of depreciation as we head through the summer months.”</p>
<p>Black Book® is best known in the automotive industry for providing timely, independent and accurate vehicle pricing information, and is available to industry-qualified users through online subscription products, mobile applications and licensing agreements. A leading provider since 1955, Black Book has continuously evolved to ensure that it achieves its goal of delivering mission-critical information to its customers, along with the insight necessary to successfully buy, sell, and lend. Black Book data is published daily by National Auto Research, a division of Hearst Business media, and the company maintains offices in Georgia, Florida, and Maryland. </p>Market Activity Despite Slow Holiday Weektag:www.automotivedigitalmarketing.com,2014-07-07:1970539:BlogPost:5477312014-07-07T15:52:53.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>Welcome to this week’s edition of <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-07-07-2014">Beggs on the Used Car Market</a>, with insights and analysis of the used car market from Ricky Beggs and Black Book. It was an abbreviated week of wholesale activity. The car segments came in at -$45 which is right around the change levels of the previous nine weeks. The lone segment that caught my attention was the Entry level Cars at -$37 or -.52%. The previous week this…</p>
<p>Welcome to this week’s edition of <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-07-07-2014">Beggs on the Used Car Market</a>, with insights and analysis of the used car market from Ricky Beggs and Black Book. It was an abbreviated week of wholesale activity. The car segments came in at -$45 which is right around the change levels of the previous nine weeks. The lone segment that caught my attention was the Entry level Cars at -$37 or -.52%. The previous week this segment had no change and now this week had the largest percentage change of all car segments.</p>
<p> </p>
<p>The truck segments were again slightly more stable than the cars and at a -$20 average segment change this is the <a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-07-07-2014">lowest weekly change</a> in the past three weeks.</p>
<p> </p>
<p><a href="http://www.blackbookauto.com/video/beggs-on-the-used-car-market-07-07-2014">Click here</a> for a sit-down video interview with Black Book's Kyle Luck to learn about the latest version update for the Black Book Digital mobile app.</p>
<p> </p>
<p>A true pioneer of the fleet industry, Mr. Ed Bobit, passed away just over a week ago. There is no one who was more supportive of the industry and the people of the industry than the Coach. All who had the opportunity to know him will feel the impact of this loss, but also have great memories of his friendship and leadership. Keep the stogie lit. Our condolences from Black Book to his family at home, and his family at Bobit Business Media. May you rest in peace.</p>Used Car Market Is Active With Greater Weaknesstag:www.automotivedigitalmarketing.com,2014-06-30:1970539:BlogPost:5472432014-06-30T16:05:18.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>Hello and welcome to the final Beggs on the Used Car Market <a href="http://www.blackbookauto.com/video/active-with-greater-weakness">video blog</a> for June and also for the first half of 2014, with data and insight from Ricky Beggs and Black Book. It is amazing how fast the days and weeks have been checked off the calendar. We have dealt with a spring market that was delayed, a spring market that extended into the middle of May, and an active new car sales market unaffected by record…</p>
<p>Hello and welcome to the final Beggs on the Used Car Market <a href="http://www.blackbookauto.com/video/active-with-greater-weakness">video blog</a> for June and also for the first half of 2014, with data and insight from Ricky Beggs and Black Book. It is amazing how fast the days and weeks have been checked off the calendar. We have dealt with a spring market that was delayed, a spring market that extended into the middle of May, and an active new car sales market unaffected by record numbers of recalls. Finishing up the first half of the year we had “end of month” activity, where one Black Book survey person commented that it seemed there was “<a href="http://www.blackbookauto.com/video/active-with-greater-weakness">no urgency to buy or sell</a>”. If there was one comment that appeared multiple times it related to the later model cars being a tougher sale. This is another indication that another model year will be upon us soon.</p>
<p> </p>
<p>Gas prices continue to be the topic of conversations, not only in the auto related fields, but by almost all consumers. Even with all the projections of significantly rising prices, national pump prices have increased less than 2 cents this past week and only 3 cents over the past two weeks. At $3.70 per gallon we are now $.13 over year ago levels. There was at least one auction that seemed to be thinking about <a href="http://www.blackbookauto.com/video/active-with-greater-weakness">increasing gas prices</a> as a comment was made that “gas fumes were on the buyers’ minds”.</p>
<p> </p>
<p>Looking at the weekly changes within the car market only one segment seemed to actually support the gas fumes comment. Overall the cars weekly change of -$53 was very close to the same level of change each week during June. During the most positive adjusting weeks of the spring market in March and April the Entry Level Cars, the Compact Cars, the Entry Mid-size Cars and the Upper Mid-size Cars were the strongest increasing segments, made up the segments with the lowest average price and also are comprised of the more fuel efficient models. As the comments about volatility in gas prices are prominent, only the Entry Level Cars, of the previously mentioned four segments, <a href="http://www.blackbookauto.com/video/active-with-greater-weakness">adjusted better week over week</a>. One year ago this segment also had the smallest weekly change. Apparently there are just more seats for these seats. After talking with several major players in the BHPH segment of the industry over the past few weeks, we find vehicles that fit in this Entry Level Cars segment are very popular selections.</p>
<p> </p>
<p>The truck segments average change was at slightly higher levels this week at -$39 as compared to the -$34 the previous week. This was the largest weekly decline since the week ending February 21, 2014, just prior to the beginning of the spring market strength. Even though the trucks have declined less than the cars, we now have a declining truck market for six of the last seven weeks. And for the first time in more than three months we had a weekly market with no truck segments actually increasing.</p>
<p> </p>
<p>After the smallest declining segment change of -$13 for the Compact Pickups and the major decline of -$104 for the Luxury SUVs this past week, the most consistent level of change within a segment during all four weeks of June has to be the Compact Crossovers at -$36 for the past two weeks and a four week average of -$39.</p>
<p> </p>
<p>The main question that remains to be answered is how will the market react this week with the July 4th holiday? With the majority of auctions being held on Tuesday, Wednesday and Thursday every week, at least the majority of auction activity will run in a more normal mode. But will the buyers be thinking grilling out, pool parties or heading to the beaches and lakes? At least for part of the week, we will be on the lanes and analyzing the market data. Hopefully the retail activity around the holiday will be active and will bring a crowd back to the lanes the following week looking to aggressively fill many empty holes. Happy Birthday America!</p>Used Car Market Continues Summer Slowdowntag:www.automotivedigitalmarketing.com,2014-06-23:1970539:BlogPost:5468702014-06-23T19:09:28.000ZBlack Bookhttp://www.automotivedigitalmarketing.com/profile/HollyCollins
<p>Hello and welcome to this week’s edition of <a href="https://www.youtube.com/watch?v=YdLRkcxiiGI" target="_blank">Beggs on the Used Car Market</a>. I’m Ricky Beggs, Editorial Director at Black Book. There have been so many events happening within the auto industry this past week that have a direct influence on the used car market. A few weeks ago a tremendous group of storms consisting of tornados and tremendously large hail passed right by the Denver airport. Fortunately the track of the…</p>
<p>Hello and welcome to this week’s edition of <a href="https://www.youtube.com/watch?v=YdLRkcxiiGI" target="_blank">Beggs on the Used Car Market</a>. I’m Ricky Beggs, Editorial Director at Black Book. There have been so many events happening within the auto industry this past week that have a direct influence on the used car market. A few weeks ago a tremendous group of storms consisting of tornados and tremendously large hail passed right by the Denver airport. Fortunately the track of the storm just missed the terminals at the airport and headed directly opposite of the heavily populated areas of Denver and near the auctions in Aurora. Well, this past week a significant number of the damaged cars from that day of storms made it to the local auctions. Even though the market activity was pretty solid, some of the values reflected the existing dings that covered many of the cars and trucks. A computer summary sheet of the sales would not have identified the softness as a result of the hail damage, but because the Black Book survey person was standing on the auction lanes classifying the available units, our analysts were able to react accordingly to the conditions of many of the sold units.</p>
<p>The used market also is dealing with several off the lane industry activities. The <a href="https://www.youtube.com/watch?v=YdLRkcxiiGI" target="_blank">availability of used cars continues to increase</a> within the market, offering the buyers a chance to be a little more selective. Notice I did not say an overabundance of really nice front line ready, low mileage units in the four to five year old range.</p>
<p>Gas price volatility is again the topic within the media and around the water cooler. Although the national average price of gas at the pump only increased by just over a penny this past week, by the next reporting period we will probably see a greater increase. The real concern relates to factors in the middle-east we can’t control, so speculation will continue to exist. Diesel fortunately did decline by another penny over the past week, continuing the decline that has existed for the past seven weeks. Black Book Sr Car Editor, Terry Park, was able to spend some time getting a hands on feel for the newest Subaru models coming into the market, enabling him and his team of analysts and editors to have the complete insight when projecting residual values for the finance industry.</p>
<p>And speaking of new cars and trucks, even with all of the recalls from almost every manufacturer, <a href="https://www.youtube.com/watch?v=YdLRkcxiiGI" target="_blank">new car sales continue to prosper</a>, which ultimately brings more trades, and more of these into the wholesale channels for distribution into the market. Add in the traditional and expected seasonal summer softening and the comments such as “downtime in the business” and the feeling that the buyers are in a “wait and see attitude” goes right along with several reports that referenced that prices seem to be leveling off and adjusting down.</p>
<p>Looking at some of the resulting actual changes, the number of adjustments made during the past week was the lowest number during the three weeks of June, at only 1318 per day on average. And of those adjustments, the 28% that were positive changes is the fewest since the week ending February 21, 2014. With all these changes there were improvements as six of the ten car segments had smaller declining amounts week over week, leading to the smallest overall average segment change within the cars during June at -$45, which was slightly more than the -$39 in the year ago matching week.</p>
<p>The truck market continues to trend with lower levels of depreciation than the cars, but for each of the weeks of June the average truck segment change amount has increased, from -$9 to -$17 and now, to -$34 this past week. We are still better than one year ago when the change level was -$48. Ten of the fourteen truck segments had larger declines week over week. Seven of the segments had their largest decreasing level for a week during the past three months. For the first time in at least the last three months, the Full-size Pickups did not increase for the week coming in this week with a $0 change.</p>
<p>We hope you will check back with us again next week to see what factors, direct and indirect, will contribute to the market conditions and adjustments. We will see you on the lanes and have a great week!</p>Is Tesla’s Open Sourcing of Its Technology Simply Brilliant PR?tag:www.automotivedigitalmarketing.com,2014-06-18:1970539:BlogPost:5463202014-06-18T12:00:00.000Zsara callahanhttp://www.automotivedigitalmarketing.com/profile/saracallahan
<p><a href="http://api.ning.com:80/files/oszb1oYwZCn5z9s030uZ5LWl0uM7sp9vdTBRKUd3T3VP2uomfT8ckVu-bp46fFpf0iPIERdBLfY0DDPqxu08qYXxlkBRhs7t/20140506elonmuskisborrowinganother150millionfromgoldmansachstobuymoreteslastock.jpg" target="_self"><img class="align-full" src="http://api.ning.com:80/files/oszb1oYwZCn5z9s030uZ5LWl0uM7sp9vdTBRKUd3T3VP2uomfT8ckVu-bp46fFpf0iPIERdBLfY0DDPqxu08qYXxlkBRhs7t/20140506elonmuskisborrowinganother150millionfromgoldmansachstobuymoreteslastock.jpg?width=500" width="500"></img></a> <span class="font-size-3"><strong>Last week, Tesla Motor’s CEO, Elon Musk, announced via the <a href="http://www.teslamotors.com/en_CA/blog/all-our-patent-are-belong-you">Tesla Blog</a> that Telsa would be making its technology available to any…</strong></span></p>
<p><a target="_self" href="http://api.ning.com:80/files/oszb1oYwZCn5z9s030uZ5LWl0uM7sp9vdTBRKUd3T3VP2uomfT8ckVu-bp46fFpf0iPIERdBLfY0DDPqxu08qYXxlkBRhs7t/20140506elonmuskisborrowinganother150millionfromgoldmansachstobuymoreteslastock.jpg"><img class="align-full" src="http://api.ning.com:80/files/oszb1oYwZCn5z9s030uZ5LWl0uM7sp9vdTBRKUd3T3VP2uomfT8ckVu-bp46fFpf0iPIERdBLfY0DDPqxu08qYXxlkBRhs7t/20140506elonmuskisborrowinganother150millionfromgoldmansachstobuymoreteslastock.jpg?width=500" width="500"/></a><span class="font-size-3"><strong>Last week, Tesla Motor’s CEO, Elon Musk, announced via the <a href="http://www.teslamotors.com/en_CA/blog/all-our-patent-are-belong-you">Tesla Blog</a> that Telsa would be making its technology available to any car manufacturer that wants to use it.</strong></span></p>
<p> </p>
<p>Elon Musk explained his decision very eloquently when he said:</p>
<blockquote><p><i>“Technology leadership is not defined by patents, which history has repeatedly shown to be small protection indeed against a determined competitor, but rather by the ability of a company to attract and motivate the world’s most talented engineers. We believe that applying the open source philosophy to our patents will strengthen rather than diminish Tesla’s position in this regard.”</i></p>
</blockquote>
<p> </p>
<p><strong>Tesla is in a tenuous position as it finds itself mired in court battles fighting for its right to sell vehicles using the business model it has chosen.</strong> Due to its direct-to-consumer model, dealers have continuously challenged Tesla’s position in the automotive industry through state automotive dealer associations. At the same time, consumer sentiment and support for the automaker has gotten increasingly more vocal.</p>
<p> </p>
<p>While Tesla may have just thrown any future licensing revenue out the window, what it stands to gain could possibly prove more valuable in the end.</p>
<p> </p>
<p>Tesla considers itself a technology leader in the electric vehicle field and in his blog, Elon Musk criticized large automakers for producing electric vehicles with limited range in limited volume. He also criticized those OEMs that produce no zero emission cars at all. Perhaps Tesla has grown weary of the large automakers efforts to prevent it selling vehicles and has resorted to the most powerful resources that they have… the public?</p>
<p> </p>
<p><span style="color: #000080;" class="font-size-3"><strong>I’d be interested to know what others think about this issue. Is Tesla’s open sourcing of its EV technology a true gesture of philanthropy. Or simply a ruse to get attention?</strong></span></p>